Is The Landlord Responsible for Bringing the Building Up To Code?
I am looking to open a restaurant in TX, and am going through lease term negotiations. The building that we'd like to go into is historic, and there are some health/safety/fire concerns. The building is on pillar and pier, so the gas and water lines were run underneath the floor. Whoever installed the lines then simply cut holes in the floor to access the kitchen area but never sealed around the lines. Additionally, there is conduit running from the back of the building through an open window. This is also of course a major concern and health code violation.

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My question is the title. Among these things as well as any plumbing/HVAC/Electrical issues, what is the building owner responsible for resolving prior to our finalizing a lease agreement?

EDIT: It appears that the building was grandfathered through a bunch of code changed over the years. Also, the negotiations have been very casual and while it seems that they don’t want to put any work into the building, they don’t want to provide very much on the way of abated rent either. I’m trying to get as detailed and specific as I can without the deal falling apart.
[{"id": "iz862zn", "text": "Whatever you agree to. Which is why you want language in the lease stating what condition it is to be delivered in or if the landlord will give you ti dollars to fix up his property. \n\nOr he can completely fuck you and charge you rent while you deal with the city in a space you can\u2019t even legally occupy. I\u2019ve seen it both ways", "replies": [], "depth": 1}, {"id": "iz86upq", "text": "It depends on what it says in the Lease. LL only has to do what they agree to do...everything else is on the tenant. \n\nI showed a building a couple of weeks ago asking $2.50/SF per month and the LL said the tenant needed to spend roughly $550k to bring the building up to code for \"any use\" and wasn't offering any TI $$.", "replies": [{"id": "iz88zyv", "text": "LL can ask for anything. Doesn\u2019t mean it\u2019s going to happen!", "replies": [], "depth": 2}, {"id": "iz9kmkn", "text": "This sounds pretty reasonable for a market that quotes PSF monthly instead of yearly, to me.", "replies": [], "depth": 2}, {"id": "izcroxl", "text": "What market are you in? $30 annually is on the high end of anything that we\u2019ve got here in Tucson", "replies": [{"id": "izd5ak4", "text": "Orange County, California\n\nI rep office spaces ranging from $1.50 SF to $3.00/SF and retail ranging from $1.95/SF (NNN) to $$3.75/SF (NNN) monthly.\n\nWe have stuff in LA asking $7.00/SF NNN", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iz87k67", "text": "Depends on the lease agreement\u2026.", "replies": [], "depth": 1}, {"id": "iz8cqcx", "text": "I highly recommend you get yourself a good commercial real estate attorney to help you review and negotiate the lease. Call around and find someone with a track record of dealing with this type of space for this type of use.\n\nEDIT: spending $2-3k here could save you $20-30k over the next 5 years", "replies": [], "depth": 1}, {"id": "iz90pr7", "text": "It can be whatever you want and whatever you can negotiate", "replies": [], "depth": 1}, {"id": "iz95q4y", "text": "It might be to code, meaning they are grandfathered in", "replies": [], "depth": 1}, {"id": "iz95rid", "text": "Check the grease trap system\u2026 sounds like this place not be the best", "replies": [], "depth": 1}, {"id": "iz9f00e", "text": "Doesnt it say right in your lease agreement what the LL is responsible for? Sounds like you have a NNN lease.  Sounds like your responsibility to bring it up to code.  Unless you negotiate with the LL.  Find out the costs of bringing it up to code and use it to negotiate free rental months or other concessions.", "replies": [], "depth": 1}, {"id": "izah627", "text": "As others have said, negotiate what you want the LL to do prior to delivery of the space.  There should be a section of the lease regarding the description of the premises, or an exhibit stating what the LL will do prior to you taking delivery.  \n\nWe've had tenants take spaces as-is and they are responsible for bringing the space up to code in order to get their approvals for whatever permits they need to operate and we've done full scale renovations.  It's all dependent on what you negotiate. \n\nWhen I show someone a space, I expect them to know enough to see what needs to be done or they should bring a contractor who can tell them what needs to be done for their use. \n\nWe generally negotiate rent based on how much we need to do.  No LL work or TI? Cheap rent.  A lot of LL work and TI? High rent.", "replies": [], "depth": 1}, {"id": "izaqwp9", "text": "Nooooooo.   It\u2019s the Wild West bro it\u2019s all negotiable", "replies": [], "depth": 1}, {"id": "izc9mge", "text": "Have you signed a lease before? Run a restaurant?\n\nWhat are your other options?", "replies": [{"id": "izcmf6a", "text": "I haven\u2019t signed a lease before, but am working on finding a lawyer. I\u2019ve run several restaurants", "replies": [{"id": "izcmjzp", "text": "I\u2019m in Texas. Happy to give you some recommendations if you\u2019d like.", "replies": [{"id": "izcwez3", "text": "That would be much appreciated, thank you!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "izcq40s", "text": "Due diligence and negotiation is an art.\nFind a GC or Engenier that specializes in the future use of the building and cost estimate bringing the building to full compliance and or obsolete stage. \nIf you looking for long term business build the cost into the lease either upfront by the LL in the form of built out or you do the job and spread out the cost into the lease bravely vested in the early years. \nWether owners agree or you move on", "replies": [], "depth": 1}]