Property manager asking questions before wanting to show space?
I recently sent a message to view a small town / Main Street commercial space available for rent.  Without any further questions, the person asked what type of business it is.  Is this normal without some kind of NDA in place?  Seems a bit backwards IMO.  Curious if others think I’m right or wrong.  It’s been vacant forever.
[{"id": "iqernnr", "text": "Common question I think. They may not want to lease to certain businesses.", "replies": [{"id": "iqestr3", "text": "Yep. Many business types are carved out of potential uses in the MSA for the commercial area. If this is a strip mall, they will likely carve out strip clubs, smoke shops, liquor stores, massage parlors, etc... This is a very standard question as any of these businesses would be a nonstarter.", "replies": [{"id": "iqf2fgh", "text": "Why go through all the hassle if you can't even pre qualify?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iqetgdt", "text": "Yes, knowledge of use type is required since zoning and permitting is involved.  Also, Landlord may not permit certain uses such as CBD, etc.  Prior to my office scheduling any tour we require: use type, prior or existing experience, term requested, general idea of ability to build out, site requirements, etc.\n\nYou would be amazed how many inquires we receive regarding properties in downtown Washington DC with no dedicated parking, yet their site requirement requires parking.  Or, they require venting, X ceiling height, X venting ability, X sqft, etc.  We receive 1-2 inquires about opening a day care per week, yet these people don't even know the requirements by the city to open a day care.\n\nMost PMs and LLs are not going to waste time on an applicant who won't qualify.", "replies": [{"id": "iqetrza", "text": "Doesn\u2019t it make sense to get an NDA signed then?  Giving away business type for commercial space seems a bit risky in some cases off the bat?", "replies": [{"id": "iqevaj8", "text": "A landlord is not looking to steal your unique business idea, they're looking to lease space.", "replies": [{"id": "iqexs20", "text": "Yeah, why the weird focus on NDA? They\u2019re looking to put OP in a general category; retail, food/beverage, manufacturing, etc. Revealing that isn\u2019t a trade secret.", "replies": [{"id": "iqh3x3w", "text": "OP invented an anti grav machine and he fears the landlord will go in to the anti grav business.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "iqf4kxf", "text": "If you ask to sign an NDA, you\u2019ll never hear from them again.  I certainly wouldn\u2019t want the hassle of a tenant who thinks they need legal protection to tell someone what they do.", "replies": [], "depth": 3}, {"id": "iqf73hc", "text": "What is risky about telling someone what type of business you intend to use their space for?", "replies": [], "depth": 3}, {"id": "iqffqq1", "text": "NDA for what?  You are not sharing confidential information.  NDA comes into play for when you send tax returns, bank statements, financial statement, etc.\n\nAs others have stated, no one cares what your business idea is.  But, knowing what uses are by right is important.  And to be candid the chances you have a one in a million idea that a Landlord will pursue is near non existent.", "replies": [{"id": "iqfyjfh", "text": "Mmmm\u2026I actually disagree on your comments.  I use NDA\u2019s all the time - none of which in the spectrum you mention.  What type of business I want to open in a small town with about 6 businesses on the main drag is absolutely confidential.  \u2018One in a million idea\u2019 is not the point, it\u2019s others knowing about a potential profitable business idea with zero repercussions if they steal the idea for themselves.", "replies": [{"id": "iqg8rjx", "text": "No one has ever even thought of putting a chevron on this corner I need to protect my IP", "replies": [], "depth": 5}, {"id": "iqgnd6h", "text": "That is absolutely ridiculous. If you are at the point of looking to lease a physical location you should have a business plan, financials, entity set up started already so you are a ahead of anyone who\u2019d attempt \u201cstealing\u201d this idea of a 7th business in a small town\u2019s main street. Focusing on the NDA and pushing it is 1. Putting you further behind 2. Annoying the LL/PM to where you won\u2019t be getting a space regardless since you are demonstrating to them that you would be a difficult tenant.", "replies": [], "depth": 5}, {"id": "iqhr3uu", "text": "You have a right to disagree.  I'm a Landlord and PM of over 100 properties.  My Tenants range from National Credit Tenants (Starbucks, 7-Eleven, Chic fi la) to regional Tenants to local Tenants.  However, I am in a major city.\n\nIf you are in a town with only six businesses, discuss this matter with a LOCAL attorney in your area instead of polling the entire internet.  Most of who do not live in your geography type.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "iqg71nk", "text": "Is your idea so good that it\u2019ll be stolen by anyone who has even a basic description", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iqeww7f", "text": "They don\u2019t want to waste time and are vetting you. Most sign callers are tire kickers looking to waste your Saturday.", "replies": [], "depth": 1}, {"id": "iqexrgb", "text": "Get ready to furnish P&amp;Ls and or a business plan. I've seen it with smaller landlords and smaller spaces. Intrusive, but many new businesses walk away from their leases.", "replies": [], "depth": 1}, {"id": "iqexx0a", "text": "Whenever a prospect calls about space for lease, the FIRST question is what type of business. This is for many reasons - non compete clauses, unpermitted uses or even uses ownership doesn't want to consider. \n\nNo, and NDA isn't necessary or required. They didn't ask you the \"tenants name\"....they asked you the type of business it is for. (i.e - 85 Degrees \"bakery\").\n\nWe always receive \"shady\" calls for \"medical\".....just to find as we dig deeper that it is a dispensary. No thank you...", "replies": [], "depth": 1}, {"id": "iqf2khz", "text": "Absolutely yes.  Unlimited reasons why this is good for both of you.", "replies": [], "depth": 1}, {"id": "iqf9j1x", "text": "Yeah that seems normal, some leases in the shopping center potentially have restrictions on what is not allowed to be leased in the shopping center for competition purposes. Some retail spaces also require more parking spaces than others and depending on your service you may not be an option to them.", "replies": [], "depth": 1}, {"id": "iqfab3f", "text": "Fair points folks - I\u2019m overruled\u2026  I can understand if in a market with limited commercial space to be more selective up front my the owner/prop mgr, but I\u2019m talking rural Canada where they should be begging me to rent the space (?).  Maybe just me.. if I owned commercial space and hired a property management company to deal with it (per the dynamic im talking about), I would not be happy if they didn\u2019t entertain a potential customer because he didn\u2019t want to discuss the \u2018business type\u2019 prior to viewing.", "replies": [{"id": "iqfg5t0", "text": "When does ur gun shop, strip club, cannabis, or massage parlor open?", "replies": [{"id": "iqfxqjj", "text": "I was definitely hoping for all of the above in 1 location", "replies": [{"id": "iqgfdop", "text": "Lol. I\u2019ll see you at the grand opening.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "iqfoga2", "text": "I think any property owner would be glad to hear that their manager was vetting out potential tenants instead of wasting time touring everyone that called. Doesn't make sense for both of you to waste your time if your use isn't permitted. Also if the space would work for you the owner would find out the type of business you are in anyways.", "replies": [{"id": "iqfxsgf", "text": "Trust me, nobody is calling up here lol", "replies": [{"id": "iqg1b3m", "text": "The owner still needs to ensure that he is in compliance with zoning laws and that you aren't going to be something that will be destructive to the property. It's kind of mind-boggling that you are so surprised that you were asked that.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "iqg576n", "text": "You can be generic about the business type... I've dealt with rural Canada retail spaces as well and if someone wanted the space but wouldn't give any high level explanation that would be pretty sketchy", "replies": [], "depth": 2}, {"id": "iqhxx32", "text": "I beg no one. Having a challenging or high maintenance tenant isn\u2019t worth it yet. \n\nThe buildings appreciation has been far outweighing the cash flow from rent. If they have been refinancing that building or pulling equity out in the 19,20,21 markets, amd smart, they are sitting on a pile of cash, or if they own it out right.\n\nIf those types of tenants want to be in demand it has has to be in 2008-2012 dire straights.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iqfrxd0", "text": "Soooo..what kind of business is it,", "replies": [{"id": "iqfs17o", "text": "Hahahaha.  That\u2019s the problem\u2026 I don\u2019t really f\u2019in know yet \ud83d\ude02", "replies": [{"id": "iqfv43m", "text": "Lol.  I like the idea of going through with a NDA and then disclosing \"I have no idea.\"", "replies": [{"id": "iqfxjxm", "text": "I was going through that in my head also.  NDA formalized, signed off and then just say \u201cretail\u201d", "replies": [{"id": "iqg0gkx", "text": "You genuinely have no idea?  Why are you wasting everyone's time then?", "replies": [{"id": "iqg0l7v", "text": "It's reddit.  By definition, we are all wasting time.", "replies": [{"id": "iqg0q51", "text": "Not redditor's time, the PM folks", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}, {"id": "iqg5eoo", "text": "Why would you need to sign an nda to tell them it's a retail use? Do your homework this makes no sense", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "iqhyggo", "text": "Then why would they rent to you if you don\u2019t have a business plan and revenue projections?  It\u2019s not like residential. \n\nWe don\u2019t lease or commercial buildings to anyone who wants business space. If you get in there and can\u2019t afford it,  the expense of removing you is tremendous and you depreciate the value of our buildings.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iqgth0o", "text": "There are actually so many things as to why they would need to know what type of business\n-Zoning \n-Parking\n-Exclusivity deals\n-Trash and cleanliness of center (Restaurants are dirty af)\n-Prior business that went out of business coulda been the same idea\n-Have you run a business like this before\n\nYou don\u2019t have a business even yet you have an idea. 2 different things. Don\u2019t blame the PM for not wanting to waste his time especially since \u201cWinter is coming\u201d lol", "replies": [], "depth": 1}, {"id": "iqh3tkk", "text": "Entirely common.\n\nIf they already have a dentist, they don't want another. If they have someone that sells vanilla ice cream (or the property across the street does) and you make hot fudge, putting you in the space will likely double vanilla ice cream sales for their other tenant (or the tenant across the street), and no doubt be beneficial for you.\n\nOr, maybe you sell fishing lures, and the last 3 times he tried to put a fishing lure business in there....it failed.\n\nLandlords do well, when their tenants do well.", "replies": [], "depth": 1}, {"id": "iqh43r3", "text": "Just read all the comments.  The OP has no idea what he's doing and he simply wants to a) talk and sound impressive, and b) explain to everyone that comes to this thread, why he's smarter than everyone here.", "replies": [], "depth": 1}, {"id": "iqhx7y6", "text": "Common.\n\nMy owners won\u2019t lease space to direct competitors of their operating businesses (dealerships and insurance companies)  in x amount of miles of the businesses if they own buildings near by in thier CRE portfolio.\n\nOr a friend recently was trying to lease out a space for yoga/kick box gym. Owners of building own another building not far with yoga studio. This changes the terms they are willing to lease at, and want 6 months of base rent and CAMS as a security deposit.", "replies": [], "depth": 1}, {"id": "iqildxl", "text": "Pretty standard, that always the first thing I ask", "replies": [], "depth": 1}]