Is this normal?
So, quick background story. I'm trying to lease a parking lot and rent it out to commercial vehicle owners. I met with a commercial real estate agent to look at the property in person and told him that I am not incorporated yet when he asked for name of my business. After few weeks of chatting with him, I put in an offer. He's been very slow with responding. Almost a week after I put in an offer, he responded asking for me to fill out a prospective tenant application. The application requires me to personally sign for as a guarantor. Is that normal? I understand his skepticism but I don't feel like he's taking me seriously... I wanted to meet with the owner to lay everything out on the table and show Im trustworthy but the agent is gatekeeping the owner away from me. How should I approach? Does t make sense for me to guarantee for my soon to be found business... 
[{"id": "efs067b", "text": "Yes, totally normal! Sounds like you\u2019re not established as a business yet - again, normal - the landlord is just using this  as a precaution should you default on your lease. Keep in mind that if you sign a lease with your established business as the tenant &amp; sign yourself as a personal guarantor ... you\u2019re basically signing your life away. If you are confident in yourself &amp; your business, then go for it!\n\nAlso, don\u2019t feel weird about not meeting with the landlord. The broker\u2019s job is to be the liaison between you &amp; the landlord. Make em\u2019 work for that money, honey. ", "replies": [{"id": "efs0dl5", "text": "Thanks for the info! I'm definitely not guaranteeing for the business. I think that'd be stupid... Never know what happens. I did offer them an extended term I can sign for to get a lower lease. ", "replies": [{"id": "efs1oq3", "text": "TBH Unless your business is well established, no legit LL will give you a lease without a guarantee ", "replies": [], "depth": 3}, {"id": "efsak28", "text": "No established or even semi-informed landlord will see any value in the extended term. If you can\u2019t pay the lease (which a new business is unproven in it\u2019s ability to do so) or personally guarantee the lease there\u2019s functionally nothing stopping you from going dark in the night.\n\nThere\u2019s a reason commercial LLs lust after fortune 1000 tenants. ", "replies": [{"id": "efvzkoy", "text": "I love your comment about the Fortune 1000.  I've been a commercial LL 20 years, and about 10 years or so ago I realized I only want to do business with companies listed on the stock exchange, or good financials LOL.  It's refreshing to hear someone else say what took me ten years to learn!  Great advice there.  ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "efs0ykl", "text": "He isn't taking you seriously because you're not acting like a serious prospect. It's very common for a commercial lease to include a personal guarantee. The owner hired an agent to be the gatekeeper for a reason. If you show proof of funds, sign a LOI, and seem like a serious potential tenant they'll make the introduction. \n\nI am curious, why do you think you can lease this parking lot to a fleet owner at a higher rate than the current owner will lease it to them directly?", "replies": [{"id": "efumf7s", "text": "It sounds like he\u2019s essentially signing a master lease then subleasing 1-XX number of spots to other subleasee\u2019s. The LL isn\u2019t going to subdivide the spots for numerous users, so OP is taking on that burden. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "efs9ul8", "text": "Even if you have been in business for years you will almost always have to sign personally. \n\nIf you're a fortune 500 company no you dont. Anything even remotely small time you will need to sign for. \n\nYou will never get a lease on any commercial property unless you sign for it personally. Do you think landlords just sign with a brand new business and then get screwed if they dont pay? Not how it works. ", "replies": [{"id": "efsrham", "text": "Ye, I figured so. Maybe my expectations were not realistic but I have to find a way to not personally guarantee... ", "replies": [], "depth": 2}, {"id": "eft2oi5", "text": "&gt; You will never get a lease on any commercial property unless you sign for it personally.\n\nI'm not the OP but I've heard this and have a question about it.  My little business has been going since 2016 so it's not newly established.  It's an online shop right now in order to keep my overhead at minimum but I do have the goal of growing revenue until I can afford a lease on either a small retail shop or a small warehouse.  I've heard that business tenants have to personally sign for the lease as everyone is stating here, and that if your business fails, you're still on the hook for paying off the rest of the lease.  Is that true, or is there a way to dissolve the lease if the business goes bankrupt?  \n\nI'm being super conservative so I really don't expect this to happen to me.  But I like being prepared for all possibilities.  \"Plan for the worst, hope for the best\" as they say.  Anyway, if the tenant does still have to pay off the duration of the lease, is it typical for them to sublet it in order to accomplish that?", "replies": [{"id": "eftfpp9", "text": "Hey, yes you will likely have to personally be responsible for the lease if the business fails. \n\nOther than a really large corporation, I have not seen anyone not have to sign a personal guarantee. ", "replies": [{"id": "efyj4zz", "text": "A followup question if you don't mind.  What if they were able to get another business tenant in there before my lease expires?  If I still have to pay out the entire lease and they get another tenant it seems like they're making double income on the same space.  Is that just the way it is in commercial RE?", "replies": [{"id": "efyll3y", "text": "No they cannot double dip.\n\nIf you sign a lease, and then for whatever reason need to end it, you tell the landlord to work to re lease it. Similar to how renting an apartment works. You are responsible for the rent until a new tenant is found. Plus any early termination fees in your lease. ", "replies": [{"id": "efyodrs", "text": "Ah, that makes sense.  So you only have to pay off the rest of your lease if they're not able to re-lease it.  Thanks!", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "efsf0ck", "text": "With all due respect. If I was the agent in the same situation I may not take you seriously either. Most commercial agents who have been in the field for a long time know what qualified vs unqualified is. Red flags include. No business name. New co. Makes every skeptical if you will even close. No tenant rep agent. Thinking you can do something the current Landlord hasn\u2019t done. All red flags. Also a week to respond is not a long time.\n\nAlso, if I was your agent I would highly recommend you don\u2019t sign a personal Guarantee. Instead negotiation a larger deposit.", "replies": [{"id": "efsr95m", "text": "Great, thanks for the advice. I'll see what I can do. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "efvzech", "text": "I have nothing to say about the guarantee that the others haven't already said.\n\nYou want to start a business.  You want no risk.  That's called being an employee.  Welcome to entrepreneurship.  If this will keep you up at night then this path may not be right for you. \n\nThe advice about 6 month guarantee or a large deposit is good, as everything is indeed negotiable.  The LL response will depend on how experienced he is and the quality of his real estate.  ", "replies": [], "depth": 1}, {"id": "efyrf8d", "text": "There is no way you will get out of a personal guarantee.  My husband and I have done various commercial development deals over the years and signed personal guarantees 80% of the time.  We've never had a problem with it because we had thoroughly researched and priced out every aspect of a deal &amp; were certain we'd be successful.  In addition, we always lived beneath our means and had plenty of money in the bank in case of a hiccup.  \n\nWhat do you know about leasing parking to commercial vehicle owners?  Do you know how much rent they pay and how strong the demand is for such space?  Do you know about the insurance required and how liability issues will be addressed?  \n\nThis is kind of similar to places where people rent space to park their RV's and boats.  It might be a great thing.  If you do not already have a detail business plan, based on actual market data, you need that yesterday.  Something like that would impress a broker and in turn the property owner.  ", "replies": [], "depth": 1}]