Typical concessions for retail deals?
Hi /r/commercialrealestate ,

I'm an office tenant rep broker, but I've got a friend who is looking to open up a high-end men's salon locally. He is looking for a 10 year term in a high-density retail area in a major US city.

I was wondering what you all would say the typical tenant improvement allowance/free rent structure would look like. In an office deal, for instance, we usually see $5/year of term and 1 month free/year of term.

I'm sure market rates vary, but any insight would be helpful.

Thanks!
[{"id": "cxqqsqd", "text": "It's all over from what I've seen  (but I'm not a retail specialist).  I've seen landlords who are primary developers try to cover all tI improve rents and profit on the construction side of the build out.  I've also seen very in demand places offer 10 year initial term, like 4 5 year options, and you get a floor, and a roof deck.  They won't cover a thing to even bring in hvac/white box.  \n\nSorry that problem isn't helpful,  but I'd probably focus on what makes most sense for the client and not what is of market norms.  \n\nIf you are going 10 years on a salon build out there is going to be plenty of ti and time for both parties to amortize it so hopefully you can negotiate a situation that works for both", "replies": [{"id": "cxr7i2x", "text": "&gt; I've seen landlords who are primary developers try to cover all tI improve rents and profit on the construction side of the build out. I've also seen very in demand places offer 10 year initial term, like 4 5 year options, and you get a floor, and a roof deck. They won't cover a thing to even bring in hvac/white box.\n\nI've done both of these deals on the landlord side. Like most things, it depends on the submarket, specific space, and appeal of the tenant (concept and credit). I suggest speaking with a retail broker in your office or in your social circle, assuming you're located in your buddy's market.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cxu2bld", "text": "Call me if you'd like.  www.benjaminlafreniere.com\n\nBe glad to help.", "replies": [], "depth": 1}, {"id": "cy4w6sy", "text": "Completely differs from city to city.What you describe as your \"typical\" office deal is very different then what we are seeing in the DC/Northern VA market. We usually see about 1 month free/year (negotiated, starting around .5/year), rental rates started just above $50 PSF, a little cheaper across the river in Arlington but climbing, and a TI package all across the board. ", "replies": [{"id": "cydhjva", "text": "Real estate is local / relative - every market is different.   What's \"market\" varies from neighborhood to neighborhood.   There is no such thing as what's \"normal\" as markets vary by income,  supply/demand, population size,  density.....", "replies": [], "depth": 2}], "depth": 1}]