Can I lease a commercial space office/retail etc if our business is new and hasn’t made much profit yet?
I’m looking to get a retail space for our micro business. We’ve generated 1200$ so far (not a lot). But have only worked on our small business on and off. So now we want to spearhead our business and need space away from our house. Because we haven’t made much on our business , but I make good money at my job, and hoping they can also factor in my income from work. what are the chances for locking in a retail unit 
if our business revenue isn’t much,  yet?
[{"id": "hcw4cgu", "text": "Are you going to keep your current job? You\u2019ll most likely have to personally guarantee the lease and then they should look at your tax return which should show your job income. It also helps if you own your house instead of rent or if you have any other assets.", "replies": [{"id": "hcwgd6x", "text": "Will be keeping my job as it is the main source as of now.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hcw6znd", "text": "They care more about the personal gaurantee than the business on that type of thing.  If you can afford it personally it will be fine.  If you cant and expect them to gamble on your business that probably wont happen.", "replies": [], "depth": 1}, {"id": "hcw7qaq", "text": "Depends on the landlord and the space. You can find poorly managed properties or properties that have had vacancies for extended periods where the landlord just wants to stop the bleeding.", "replies": [], "depth": 1}, {"id": "hcw9bck", "text": "Look for small spaces that are offered as a Gross Lease. That\u2019s basically like renting an apartment. You pay a fixed rate per month for a period of time (length of the lease). There are other types of commercial leases but a Gross lease is what you want. \n\nFind a Commercial Broker. They\u2019ll help you find a space that meets your criteria and will save you a ton of time and will help you avoid scumbag property owners. It\u2019s worth the extra price.", "replies": [], "depth": 1}, {"id": "hcw9idu", "text": "Class A and many B retail will take a pass but C and some B may take a chance. TT will have to determine if their business will thrive in such centers though.\n\nAs a LL, I'd want to see 3 yrs of personal tax returns, financial statements, business info/financials, personal employment history.  Would also want to know who will be operating the store (ie are you quitting your job or your family members running the business day to day and their past/current level of involvement in the business)  I'd seek personal guarantee or large (3+ mos rent+exp) security deposit. If TT can swing it, a LC can replace the personal guarantee (better for LL).  LL wouldn't want to commit much of any TI (maybe some free rent) and probably offer a short lease  (i.e. 3yrs or less) to determine viability.  You could try to negotiate to have the security or LC burn off each year you are not in default of your lease agreement.  \n\nAt a min LL will seek to hold enough $ to recover leasing commissions, free rent, any TI, legal costs and a bit of $ to compensate for their troubles if you go BK.", "replies": [{"id": "hcwg2zd", "text": "You basically summed up what a LL offered me through a broker just now. He wanted 3 months upfront as a security deposit. He didn\u2019t ask much else as far as business financials go, but broker wants my wife\u2019s last 2 yrs tax returns even though she recently quit her job and would be running the shop full time. Broker seems somewhat skeptical. Should I be worried about the deal falling through? According to them landlord approved me with 3 months deposit, but broker seems kinda off set about it. What could this mean?", "replies": [{"id": "hcwlljr", "text": "If info about your wife having quit her job is new to LL, it might make them wary.  However, you need to put a convincing positive spin to this to demonstrate your family's commitment to make the business succeed.  \n\nMaintain amicable relationship with the broker since he is standing between you and the LL... no reason to give him any ammo to scuttle your chances.  Not sure how much vacancy the center has and for how long, but broker should be happy for any commission and better yet, a 'deal' he was able to get done during current conditions.  Maybe LL is looking to hold back some of his commission to see if you can go the full lease term without defaulting.\n\nBrokers are supposed to present all deals to the LL.  Issue is, if a lease defaults, broker gets heat from the LL even though it was ultimately the LL's call.", "replies": [], "depth": 3}], "depth": 2}, {"id": "hcwpxsc", "text": "Forgive the newbness, but can I get a little help?\n\n* TT = ??   (I am presuming Tenant something....)\n* LL = Land Lord\n* TI = ?  (no idea guessing the \"I\" is for improvements but I am learning the context)\n* LC = Letter of Credit\n* BK = ? (I am guessing Bank?)", "replies": [{"id": "hcwshia", "text": "TT = TenanT\n\nLL = LandLord\n\nTI = Tenant Improvements\n\nLC = Leasing Commissions (in my post, I used it as Letter of Credit)\n\nLC/LoC = Letter of Credit\n\nBK = BanKrupt(cy)", "replies": [{"id": "hcwsuya", "text": "You're awesome!  Thanks for the clarifications.   I swear I need to write a book of acronyms learned in life thus far.   Between serving the in the Navy and working in health care, the oilfield and now aviation its a multi-volume book for sure.  \n\nCheers!", "replies": [{"id": "hcy2zb9", "text": "Check out Adventures in CRE. They have a great glossary", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "hfyfb5n", "text": "TT- tending \n\nTI- tenant improvements (work letter)\n\nBK- bankruptcy", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hcw9u6d", "text": "Sure", "replies": [], "depth": 1}, {"id": "hcwaei3", "text": "cash", "replies": [], "depth": 1}, {"id": "hcwwn35", "text": "Sure. They\u2019ll just want a personal guaranty.", "replies": [], "depth": 1}, {"id": "hcxyhv1", "text": "Can I ask what kind of business has only $1200 in gross income and needs physical office space?  There might be cheaper options out there for you.", "replies": [], "depth": 1}, {"id": "hcy465j", "text": "Get a We Work or other short term space. Do not get any space which is not month to month.", "replies": [], "depth": 1}, {"id": "hcy9ooq", "text": "I'm wondering if you really need that space yet. I'd make it work from home as long as you can. Creating $1200 out of thin air is a big achievement, but I think you need to get that way up before you start spending on office space ($5k/month would be my absolute minimum before spending on an office). Don't forget in addition to rent you'll probably need to pay for electricity, gas, phone, internet, and insurance. My $1050/month office ends up costing about $1500/month all said and done, and I have a *great* deal.\n\nYou might want to see if any self-storage places have flex space available. You can get a good deal there and a month-to-month lease (if that's what you want), and they'll probably rent to you based on your personal credit.", "replies": [], "depth": 1}, {"id": "hcyh75y", "text": "I would absolutely reach out to a reputable broker in the area. Per comments above that a good broker wouldn\u2019t waste their time couldn\u2019t be further from the truth. If you have a well thought out business plan, plenty of reputable brokers would be more than happy to guide you especially in hopes of your success and future deals for them as well. As long as you are not in NYC, their services should be free of charge to you and they will know the market best, what landlords that would consider a use of your sort, competitors, etc. You won\u2019t want to negotiate a commercial lease without one, believe me. We do deals often with first-time operators but require what many listed above and a good understanding of the operations. Good luck!", "replies": [], "depth": 1}, {"id": "hcyobc0", "text": "Yes, but if you may need to personally guarantee the lease, especially if you want the landlord to contribute to your buildout.", "replies": [], "depth": 1}]