Need Advice, First Commercial Deal
I am interested in a retail spot (liquor store) in a new commercial development. In talking with the developer I can get a 1,500sqft. retail space for $1.75/sqft + $.0.25/sqft. cam charge. He is asking for a 10 year lease but will do 5 years. I am very familiar with residential deals but am a newbie to commercial deals. I have a few questions to ask you pro’s if you don’t mind.
1. Is it normal for a commercial lease to be done without personal credit being used? I would want everything under my new company if possible.
2. I would like to have the flexibility to sublease this spot if we should decide to move, etc. Is there a commercial term for this or is sublease the proper word?
3. I have asked for a exclusive rights for the commercial property in regards to being the only business type allowed in the retail development. Are there any things that I need to make sure are identified in the lease agreement?
4. Any additional information would be greatly appreciated.
A few questions first. 1. Have you read a copy of the lease ? That would answer your first 3 questions. Have you seen the L.L.s demographics on the site ? Have you checked local ordinances for any restrictions or distances from schools, churches, for this type of business ? What are the finish-out allowances and the L.L.s and Tenants responsibilities [schedule or exhibit C] ? Have you checked the location out with TABC for their restrictions on signage and other considerations ? Last, is there a SPECS within 5 miles of the site ? Good luck and e-mail me if you need elaboration on the above.