Arguments to protect tenant rights in a lease agreement - Sushi restaurant
Hello guys,

My landlord rejected all my terms &amp; conditons. Thus, I need the power and knowledge of reddit to give me strong arguments to argue for these terms &amp; conditions:

1. Lease asset as restaurant concept. **Right now landlord wants to narrow down from restaurant to "Sushi restaurant".** This is what we don't want, because we believe that f&amp;b industry changes alot through time and we would like to be more flexible. Even though we argued like that, they rejected us.
2. Rent of 5 years + every 5 years automatic renewal unless tenant only cancels option 6 months before. **Rejected by landlord, did not get any specific reason why.**
3. We are in a commision lease agreement where the landlord takes commision on our sales. Wee are totally fine with commision on sales where customers are ordering directly from POS, **but we are fighting to get this term**: no commision fee on third party orders such as Uber delivery, DoorDashGrubhub,Ubereats,postmates. We believe that these orders are for marketing purposes where we already allowed the third parties to receive high commision due to them delivering to customers that are not able to visit our restaurant, due to low margins in these orders we can't accept commision fees on these orders. **Even though we said so, they also rejected, so we need some more arguments**
4. I want to make sure that all investments into the location will be limited to FF&amp;E. We have experienced before that we rent a location and end up paying for costs that is related to the technical infrastructure. **Landlord rejected**, how to formulate and argue for this term?

In the very end, what other terms &amp; conditions should we fight for? We are a family restaurant with limited knowledge and resources, that is why I am trying to connect with you "commercial estate proffesionals" to learn more too fight for my family's rights in the leasing agreement.

I do appreciate you guys!
[{"id": "gn2vtfp", "text": "If you moved on from Sushi restaurant, what would you want to change too? \n\nI think the goal is to not have 3 brewpubs spring up in the same strip mall. You can pivot, but I bet it would be small?\n\n&amp;#x200B;\n\nOn 4, how would you define it? You have inspected the space, you need to know what your getting into.", "replies": [], "depth": 1}, {"id": "gn2yrkc", "text": "I predict many responses that suggest a commercial broker and/or attorney, which is solid advice. If you opt to go this route I'd not rely on an acquaintance that happens to be in the business - look for someone who can prove experience doing restaurant/retail deals in your sub-market.\n\nNot knowing much about the market or property type based on your ask let me offer the other side of the equation from a property owners perspective:\n\n1. The LL may want to narrow down the type of restaurant to not conflict with an existing or future exclusive-use clause. In other words, and depending on the size and location of the property, it would be unlikly that a national tenant would want to be located in the same center as a direct competitor if they could prevent it. The landlord wants the use as narrow as possible to not limit any future marketability of the space or entire center.\n2. How many option periods did you propose? Just a single 5 year or was it in perpetuity? If your offer was silent or explicit stated you could have options every five years for ever this is likely the reason for rejection.\n3. Percentage rent for all sales (onsite, carryout, online) has been a hot LL issue for all types of retail/restaurants, especially since it wasn't always contemplated in existing leases. Your ability to negotiate a reduction to offset the Uber charge will totally depend on the competitiveness of the center. It might just be a business decision to only do carryout once things get back to normal, or even choose a cheaper space if you think offsite will be a big proportion of your business.\n4. By technical infrastructure I'm assuming you mean HVAC, plumbing, etc. Is your biggest concern build-out costs of these for the space or maintenance and repairs? Generally (and again this depends on the space) if something is completely exclusive to your space the landlord is not going to want to maintain it. The LL is likely concerned about limiting risk so a more precise ask (\"landlord is responsible for chiller on roof\") might help.", "replies": [], "depth": 1}, {"id": "gn318yl", "text": "Man, I love retail leases with all of their funky clauses and restrictions! I once saw a retail lease that specified the flavors of ice cream this deli could sell.  Retail leases can get that specific. \n\n1. Most retail restaurant tenants pursue this lease clause that specifies restaurant type to avoid competition. What restaurant wants another similar restaurant type moving in next door? From the landlord\u2019s perspective, he can\u2019t sign another restaurant tenant who wants this non-compete lease clause if you want your restaurant rebranding freedom. You can (and should) negotiate the description to be either \u201cAsian, cuisine\u201d or at least \u201cJapanese restaurant\u201d but it\u2019s really no big deal if the concept changes. In the event the sushi restaurant concept isn\u2019t working, just go back to the landlord and explain your situation. They will agree to amend the lease to another restaurant concept provided it doesn\u2019t conflict with any other existing leases. \n\n2. You can negotiate that the extension rental rates will be determined by a third-party appraiser mutually agreed upon by both parties. This provides the landlord comfort in case rental rates increase. It\u2019s six of one, half dozen for you because you would have to pay market rent at the next location. \n\n3. Commissions from 3rd party orders to be split according to the proposed terms once gross sales reach a specified dollar amount. Come up with a dollar amount that is reasonable. \n\n4. Need more details about technical infrastructure to provide a rebuttal. \n\nOther suggestions: signage, designated parking for to-go/takeout orders", "replies": [{"id": "gn337c1", "text": "Regarding point 4:\n\nFrom our opinion the landlord shall make all permanent fixtures: \n- Construction of toilets\n- Water system, water point so we can easily connect our equipment ( our cost )wash , handwash, dishwash machine\n- Electricity outlets to the specific points in the floor plan, so we can connect our equipment such as: fryer, fridge, cold shelf, lights\n- Tiling floor, painting of wall\n- Ventilation system and kitchen hat extractor \n-", "replies": [{"id": "gn346ko", "text": "So all of these points are not already in the space? No water sources? No toilets?", "replies": [{"id": "gn37wsn", "text": "Yes, we are taking over a clothing shop and make it to restaurant space", "replies": [{"id": "gn3eg8h", "text": "What are the landlord\u2019s benefits leasing to you versus a clothing shop?", "replies": [{"id": "gn3ewkc", "text": "We are the tenant next to the clothing shop, and landlord approaced to us asking if we want to extend to the clothing shop, due to he know that we are performing very well. Which means we increase our asset from 50 sqm + 100 sqm ( clothing shop). \n\nI guess the benefits would be to have a strong and stable tenant with great sales history.", "replies": [{"id": "gn3flo4", "text": "The area is quite hidden, so he is quite amazed by the traffic we are bringing to the place.  comparing with other tenants we did 10x their sales and traffic.\nFor our part, we would like to extend to make operations smooth, our sales are not healthy right now. :/", "replies": [], "depth": 7}, {"id": "gn3fsoc", "text": "Okay, well then it\u2019s up to the landlord to decide about your TI requests. Highly unlikely tiling and paint will be covered. The rest, \ud83e\udd37\ud83c\udffb\u200d\u2642\ufe0f", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gnlmlmn", "text": "What state are you in?", "replies": [{"id": "gnmpff6", "text": "Europe, Sweden StockHolm", "replies": [], "depth": 2}], "depth": 1}]