What advice or tips would you give a new landlord leasing out a commercial building?
I acquired a building that was passed down to me from my mom. It’s a commercial (restaurant) building. I recently put it up for rent and have been getting a lot of potential tenants recently. What tips do you have for me as someone who is fairly new to this?
[{"id": "ih03nqm", "text": "Use a broker and a real estate attorney to review leases.", "replies": [], "depth": 1}, {"id": "ih0kej1", "text": "Find a commercial leasing broker in your geographic area who has similar spaces for lease and hire them to ensure you get market rate for your space. (Assuming that type of broker is available in your area.)\nThey will be worth their broker fee if they are good.  \n\nAlso, prior experience or other currently operating restaurants for a tenant is key.  People who want to open a restaurant are easy to find, people that can successfully operate a restaurant in the long term are harder to find.  \nSo if there are franchises, they are usually better, or multiple restaurant owners as well.", "replies": [], "depth": 1}, {"id": "ih3kvaj", "text": "- find good CRE attorney with lease agreement experience\n- you could hire a broker but that won\u2019t leave much $ for TI. One way is for a non exclusive listing or letting brokers aware you\u2019ll entertain any offers they bring you to minimize commission outlay. \n- do not give TI money for TT specific buildouts (ie only spend money on shell). TT items like hood/walk-in fridge/freezer etc, will have little to no value to the next tenant. \n- review prospects\u2019 business plan thoroughly as well as their past experience, their $/operating partners. If they don\u2019t have one, be more cautious. \n- don\u2019t put in a pizza/Chinese etc TT if they already exist nearby\u2026they\u2019ll just cannibalize each other. \n- just because it\u2019s a restaurant building doesn\u2019t mean it can\u2019t be for other uses, although it may be cheaper to keep it as a restaurant use.", "replies": [], "depth": 1}]