Leasing a restaurant space can surely be a challenging task. While most restaurant owners are well-versed with team management, customer service, marketing, team management, and several other things related to the restraint, one thing they lack the knowledge of is real estate. To help them out with that, commercial real estate Corpus Christi is always here. They mostly go through the leasing process just once or twice in their careers. Hence, it is very important to lease the right space at reasonable rates. This guide will give you all the details you need for leasing a space for your restaurant.
How to rent the perfect restaurant space?
Get the business plan in place along with the budget
Real estate Corpus Christi recommends having a thorough business plan set for the restaurant. This also includes choosing the right location to set up the restaurant. Your location will play the most important part when you will be showing your potential investors the place where you will be operating and what your true concept for the restaurant is.
The most integral part of your restaurant business plan should be the location analysis and other hard realities of the budget. This way, you will come to know what kind of space you can afford to rent.
Educate yourself
Talk to your realtors in Corpus Christi TX about the leasing laws of the area and how they can help you to negotiate with the landlord. As a part of self-research, you can also connect with other restaurant owners of that area to get more information. You cannot afford to gamble at this point because you will be spending thousands of dollars on rent each month. And when it comes to leasing, restaurant owners always get what they negotiate.
Have the initial start-up funds in place
Before renting the commercial real estate property for your restaurant, take a look at your business plan again. See how much funds you need in total for basic startups. If you don’t have sufficient funds, go back to the plan and crunch up some numbers. And if you have no funds at all, start looking for other financing options and choose the one which will help you in the best way, as per your current situation.
Finding a restaurant space
Do your research online to look out for commercial property for sale in Corpus Christi to see the current market price. This will help you get a rough idea of the current rental rate for commercial properties. Talk to realtors in Corpus Christi TX about the areas you are interested in and they will help you find the best property suitable to set up your restaurant.
Go see the space and measure it
Once you have 2 or 3 properties you like, go and see the space and measure it in person. This is an important step because a lot of tenants pay for phantom space. There is a lot of disparity between what the actual charges are in the lease agreement and the actually existing space. Hence, due diligence is super important, and measure the space yourself when you visit.
Avoid broadcasting buying signals
Keep your excitement aside when negotiating as it can diminish the ability to negotiate. When you visit the first time, do not say phrases like, “Oh! Red carpet will suit this space perfectly!” or “I will definitely set up this corner this way!”
Phrases like these are called buying signals and they can weaken your ability to bargain on the rental price. Avoid using the words that will work against you in such situations.
Speak to other tenants
Current tenants will give you the best insider information related to the property. You can start by introducing yourself as a prospective tenant and ask them for their honest opinion on the landlord and the property. Also enquire about the level of the property maintenance, its rental rates, future intentions of staying in another leasing term, etc. This information will be useful for you in the negotiations.
Determine what your bargaining strength is
A lot of factors play an important role in determining your bargaining strength when negotiating on the new lease for the restaurant or lease renewal. It also includes the overall vacancy rates of the building and the recent tenant turnovers. It will also include the restaurant’s size in relation to the entire property.
Your ownership status is very important too. Meaning, are you opening the restaurant independently or in partnership, your business and credit history.
Submit the application
All the rental applications are different from one another, when you are submitting the application for the restaurant, keep the following items handy –
- Your restaurant’s name
- How you will be using the space
- Landlords from the past and the rental information
- Owner’s Information
- Business banking information
- Credit references
- Credit check running permission
- Completed application
If possible, do not accept the first offer
In some cases, the first offer is always an inflated number that gives the landlords and the leasing agents a wiggle room for negotiations. A lot of agents build in the room to maneuver so that you can make a counteroffer.
Negotiate to win or walk away if need be
A lot of times, restaurant tenants don’t try to negotiate and accept the first-hand offer. Their goal is just to strike a reasonable deal and get done with it.
But, this “good-enough” policy is not so good in general. If you are not negotiating to win, you will not. The landlord will obviously counter the offer and try to negotiate. In that case, standing your ground is essential. Do not be afraid if the landlord says no. Counter offers are very common in real estate. When there are big commissions at stake, the landlord’s real estate agent is sure to negotiate fiercely. But restaurant tenants should be assertive. After all, it’s your business, and no one but you will fight for it when the need arises.
To make objective decisions, emotions must be kept aside. A mindset that includes walking away from the deal that is not suitable will help you save a ton of time and money. Your good business in a poor location will become a poor business in no time. Take your time to research and get the best deals. When the need arises, do not be afraid of making counteroffers. This way, you will have better chances of getting what you want. A lot of times, most restaurant tenants tend to hammer the deal in 2 or 3 sessions. But, it is beneficial to negotiate in stages as time goes by.
Get the lease documents reviewed with your realtors in Corpus Christi, TX
Before signing the lease, settle things with the landlord. Check whether the lease includes all the pointers that you had discussed and agreed upon. Check about the lease terms, whether it is a month to a monthly basis or year to year basis. Check about the renovations you are allowed to make. Ask your real estate agent to look at every line on the lease and ensure that you are getting everything that you are paying for.
The bottom line
Leasing a restaurant space can surely be overwhelming and it is important to do your due diligence before you rent a space to establish and grow your restaurant business. Location plays an important role in determining the success of your business and hence that is something you should never compromise on.
Are you looking for a space to lease for your restaurant in Corpus Christi? Contact the real estate agent in Corpus Christi and establish a successful restaurant right away!
