Is it common for the owner of a commercial building to allow a renter to make modifications to better suite the business?
Hello everyone, so I’m in the planning stage of my powder coating business and deciding between buying or leasing a shop. I would need drainage, electrical and ventilation added if the building didn’t have already equipped (which is doubtful). Would an owner work with me or would that be a hard no? I don’t mind buying a property but would lease if the right spot came up
[{"id": "gjoayxp", "text": "Yes many will and some will not because of the powder coating gets everywhere. It called TI, tenant improvement. Some lease include money for TI bu square foot", "replies": [], "depth": 1}, {"id": "gjobcr3", "text": "It's very common for Landlords to work with you (tenants) on modifying the building so you as a business can occupy and operate properly. Although, from my experience 'mom and pop' owners tend to give you free rent instead of actually helping you with the cost of your build out. If you are greatly improving their property with your 'tenant improvements' you can usually ask for a longer initial lease term with some options so you can feel security of adding $$$ and not getting booted after 5 years.", "replies": [], "depth": 1}, {"id": "gjofc6q", "text": "Not only do landlords work with you, sometimes they give you a tenant allowance to make updates and will reimburse you after approving plans and timely execution.   \nLook at a few locations and work with the leasing agent/land lord.", "replies": [{"id": "gjpq3os", "text": "Regarding the LL praying for the work. Not likely to be interested in paying for your very much specialized build out, because of your business fails then they will have to remove all of your improvements. Generic upgrades are off more interest.\n\nGenerally speaking, the landlord will permit you to make those changes if you are paying out of pocket. Industrial property is highly specialized so to some degree this is even expected (assuming you are renting industrial space). \n\nA commercial realtor can help you negotiate this into your lease, which I suggest you will need to do if that right property comes along. Make sure to ask for rights to renew for x number of years so you can get the benefit of your improvements over many years.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gjoidej", "text": "As a CRE landlord, I don\u2019t mind spending around 3 months equivalent rent on renovations for a renter if it\u2019ll help land me a 2 year lease.", "replies": [{"id": "gjpmirq", "text": "This is a good answer. Something about a bird in the hand.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gjoixew", "text": "The term you want to google is \"Tenant Improvements\" and it is a fairly standard practice.", "replies": [], "depth": 1}, {"id": "gjopun0", "text": "It's not *un*common.\n\nI let mine paint, they can hire their buddy to do carpets, hang shelves.  Structural, electrical, plumbing, move interior walls.....no.", "replies": [], "depth": 1}, {"id": "gjosk9x", "text": "Very common and expected. There usually is a clause where they need to leave the building in usable conditions, so they are not allowed to take down modifications done to the structure or that are attached to the building. Most brand new retail literally is the structure and when you get inside there is soil. Yes, not even the concrete on the floor is given to you by the landlord in some cases.", "replies": [], "depth": 1}, {"id": "gjozg6t", "text": "Sorry I don\u2019t have an educated answer for you but I was wondering about your powder coat business. Is this for car wheels specifically or powder costing all things? Also, what state are you in?", "replies": [{"id": "gjqvje0", "text": "It will be predominantly custom work but not just focusing on rims. I also plan on picking up some contracts for new products and eventually incorporating water transfer printing or hydro dipping as it\u2019s mostly known. I\u2019m in Colorado but will likely open in another state due to my spouse being military and only having a couple years left here", "replies": [{"id": "gjr98es", "text": "I\u2019m also in Colorado and have a steel fabrication business. Reach out to me when your shop is open.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gjp1mw9", "text": "Leasehold Improvements", "replies": [], "depth": 1}, {"id": "gjp344y", "text": "This is called tenant improvements it is one of the key considerations going into the total development costs", "replies": [], "depth": 1}]