Landlord Should Pay for Cost of Building Power Upgrade?
I had signed a lease for a small commercial building (5 small commercial units at ground floor and 5 residential units second floor). It is for a small bakery/cafe with some electrical deck ovens and other equipments that will draw around 180-200amp total for the whole operation. 

Unfortunately we are well into the renovation and the electrician informed me that while the whole building is set to run 600amp total, the wire going from the power grid into the building will only support up to 300amp and won’t be able to take on the extra load. So will need to get a permit and run new wires from the grid to the building to handle the full 600amp potential. 

Since it is a building upgrade, it should technically be the landlord paying for it. However, since I’ve already signed a lease already and I’m the one drawing the heavy load, I’m sure the landlord won’t agree to pay for the upgrade. Is there anything I can do to frame this so the landlord can’t agree to at least split the cost? As it is gonna be an extra $7k or so for drawing, permitting, material, and labor.
[{"id": "i7e4u11", "text": "Without reading your lease it is difficult to determine who\u2019s obligation it is. Typically a power upgrade for a tenant\u2019s specific use, in your case it is an electric oven, would qualify as a tenant improvement. How would the landlord know what type of equipment load your specific equipment will have? \n\nIf your landlord told you that you have 600 amps of power to your specific unit/suite and now you find out that you only have 150 amps then that is a different story and I would ask the owner if they will pay for it. If they refuse I\u2019d ask them to split it. \n\nWorst case scenario as the tenant, ask the landlord to pay for the upgrade and build  it into your rent over the term of the lease.", "replies": [{"id": "i7h80r5", "text": "Actually what this user said. I negotiate this leases for a living and unfortunately the Landlord likely has no obligation to pay for this upgrade since it is your requirement. Also your requirement is outside of the norm for this type of building, not that it matters because at the end of the day it\u2019s your lease that governs your obligations and responsibilities vis-\u00e0-vis your landlord.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i7emh5n", "text": "Did you not do an inspection of the facility before you signed a lease?\n\nPainting is a building upgrade.  Carpets and linoleum are building upgrades.  New lighting is a building upgrade.\n\nYou can ask (if it were my building, I'd certainly offer to pay 1/2...I would also ask for an increase in the monthly rate) but....this is on you.", "replies": [], "depth": 1}, {"id": "i7fgehx", "text": "Depends on the terms of your lease.  Typically, commercial NNN leases Tenant is responsible for all build out.  This includes increase water or electric requirements.  Also, this should have been part of your due diligence to confirm the property had sufficient power for your use.", "replies": [{"id": "i7h821m", "text": "Agreed!", "replies": [{"id": "i7hg1lu", "text": "Was there an existing electrical panel in the space you leased?  If the space was in \"shell\" condition (i.e. no electrical panel), then I'd think this would be on you based on leases I've seen (but you'd have to consult the lease).  Standard retail leases in our market will say something to the effect that they will ensure you have available utility services.  As a former commercial property manager, I agree with you that this serves the building more than you as a specific tenant.  A 200A panel is not a huge electrical service for a commercial user, and if the building can't accommodate this, then I'd recommend having a discussion with the LL.  I don't know how old the building is.  Maybe the developer or GC who was involved in the building would be on the hook for the oversight involving the wrong wiring.  This is going to be a big problem for the LL at some point regardless.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i7fvr7x", "text": "Someone should have noticed at the test fit and scope stage the special equipment coming in and performed a quick test on the power needs. I think your contractor, broker, or even equipment supplier dropped the ball.\n\nThat said, what we'd be doing is contemplating some sort of amortization of the increased cost, such as a lease amendment for a longer lease term, increased base rent, or simply amortizing the cost with interest.\n\nIf you want to soften the blow but get them to come along you might propose something outside the box that is along those lines.", "replies": [], "depth": 1}, {"id": "i7fxcs8", "text": "Anything upstream from your meter is the responsibility of the utility company here.  Have you checked with your municipality?  \n\nThe utility company should have run the proper wire for the permitted 600A service prior to the shell or prior occupancy permit.", "replies": [], "depth": 1}, {"id": "i7g3bkf", "text": "Without seeing your lease it is impossible to say for certain who would be responsible for the upgrade. However, I would disagree that just because it is a building upgrade it's therefore the Landlord's responsibility. Ideally, an upgrade of this magnitude would have been discussed beforehand and negotiated with your lease. Regardless, I would consider the following:\n\n\\-Did your Landlord advertise or tell you the suite had 600 Amps? If so you might have legal recourse or the ability to terminate your lease and renegotiate.\n\n\\-A 300 Amp power upgrade increases the value of the building and allows you to profitably operate your business - two things that should be important to him. Asking the Landlord to split the cost or asking him to pay and amortize the cost back to you over the life of the lease is a very reasonable request.", "replies": [], "depth": 1}, {"id": "i7he55c", "text": "As an industrial LL I deal with this from time to time. \n\nI sympathize because, while you and your team (and perhaps the LL) presumably looked at the main panel, no one would reasonably look at the wiring from the transformer to the main panel. If the panel is 600A (of whatever voltage) you'd typically assume the wires feeding it are correctly sized for that panel. Sounds like they're not, and in your position I would argue its on the LL for the incoming wires to match the panel. Especially if they communicated the 600A building capacity or said you get so much of the 600A, etc.\n\nHowever, you should note that a 600A panel does not usually mean it can run 600A continuous. I forget if the rating is 75% or 80%. Call it 480A continuous capacity. Obviously your ovens are continuous load. So it sounds to me like you're  asking for \\~40% of the building electrical capacity while occupying much less space than that. Depending on the other users that may be challenging. If the residential units are all electric (water heater, clothes dryer etc) I suspect you're all in for some challenges. \n\nSo, I would also ask what the peak load is on the building historically. The LL's power company can tell you or your electrician this. Add your continuous loads on top of that. If it converts to above 500A you have a problem even if you upsize the wire to the 600A panel.", "replies": [], "depth": 1}]