First time business owner looking to lease commercial retail space in a desirable location -- how to stand out? Tenant application package tips?
Hi, I tried to title this post as succinctly as possible: I will be a first time restaurant owner and I'm vying for this commercial space that I've taken a liking to. The property management group seems to be exclusive due to the desirability of the location. What are some tips in constructing the best tenant application possible given my disadvantage of not having previous business experience/success to present or leverage? From a landlord's perspective, under what circumstances would y'all make an exception and cut a break to someone other than an established franchise? ..other than having buttloads of cash (but it's not as if I'm not properly budgeted, either). 

To briefly describe what I'm doing: a take-out concept that requires very little space, does not require a full-blown kitchen, food costs requires little beyond the product cost itself (low preparation requirements), and labor/operational costs are minimal compared to other establishments. It's a current food trend with proven success. I've worked at a multiple award-winning restaurant of its kind in a different state but where I am now has similar demographics in terms of tastes. For the sake of simplicity, let's assume I have a winning recipe and more or less know what I'm doing.  

I can't anticipate what I don't know, but from the surface it appears to be a great location because:

* very small SF, so low rent (even if the rate is higher)
* in fact, the space is so small to the point that it'd be a deterrent to many types of businesses 
* previous tenant went out of business and left the PERFECT layout for me as well as the exact equipment I need (this is a godsend) so I'd save a *ton* in renovations
* ample parking
* good neighboring tenants
* great location, dense population from nearby businesses
* good walkability

I have my business plan and in it I've included the professionally designed logo and general aesthetic for which I've received good feedback that 'fits the grid'. Of course also included are bullet-points highlighting my value-add for the neighboring tenants, and the note that I'm not in competition with them, reasons why my food appeals to the demographic in the vicinity, etc. I have years of restaurant experience although never as an owner or manager. I personally know two other restaurant owners of the same type in two other states and can establish a client-consultant relationship with them if need-be. One of their shops is where I worked and I know the kind of sales they bring in. Even with very, very conservative estimates, we expect to be able to cover rent. Finally, I am well-budgeted.  

What else can I do to stand out? I've checked the amazing google but unfortunately most hits refer to tips for commercial space landlords making their ad attractive rather than being from the potential tenant's perspective.  
Thanks!
[{"id": "dqwc70v", "text": "Based upon your post, you strike me as being an intelligent person that's done a good job in doing the homework needed to put togther a good business plan. It seems like you're already pretty savvy at promoting your venture, so I suppose you improve your odds of success if you could find out what the landlord's profile of his or her ideal tenant looks like. If you knew that, then you coukd bait the hook to suit the fish by tailoring your presentation to his or her needs. \n\nAre you working with an agent or directly with the landlord? In either case, I'd try to discover what they want in a tenant. Good luck!", "replies": [{"id": "dqxgaqr", "text": "Hi, thanks! I'm working with 2 agents (one on my end, and one on their end). My agent reached out about the space to see if they'd be interested in the type of food-service I'd be offering as well as inquiring about rental rates but they instead shot back asking if it's an established concept or start-up. Based on that question, my agent is adamant they're wanting of a very established tenant.", "replies": [], "depth": 2}], "depth": 1}, {"id": "dqwe4t7", "text": "Another comment said to find out what the landlord is looking for and cater to that. If you're well capitalized and you said the space is already almost what you want I'd say offer to take the space as is and not request any TI. If this is an inline space that can be used for other retail purposes then the landlord might be hesitant to put another food operator in there because build out on the front end and back end is expensive. Offsetting the front end TI costs is also offsetting the back end TI costs from the last tenant. If you end up competing with a more credit worthy tenant them consider getting your 'mentors' involved either in the form of a letter of recommendation or depending on your relationship with them a shared personal guarantee. ", "replies": [{"id": "dqxgfa9", "text": "Yes, offering to pass on the TI is a great consideration, thank you! I think if there is already a grease trap in place, I would definitely go this route. It is indeed an inline space but the previous tenant ran a pre-packaged take-out meal operation from there so I don't think I'd need many, if any, changes as what I'm serving requires minimal preparation and no frying (no hood fan). I THINK that the small size of the space would actually work in my favor against other types of retailers. Businesses immediately adjacent on both sides are 2100 and 1200 SF, and one shop down the space is 1610 SF. For some reason, mine is the oddball out at &lt;600 SF in the entire building, but for me it's perfect.  \n\nI definitely could present a letter of recommendation and actually even have a connection who has 30 yrs of restaurant experience be my 'partner' on paper although I'm not sure if my interaction with the space broker will progress to that point.. My agent inquired about rates and rather than answering, they shot back asking whether we're bringing an established concept or a start-up. If they'll deny me outright simply based on my experience, I may not have the opportunity to present a recommendation :(", "replies": [{"id": "dqxnovp", "text": "Less than 600sf is tough. If they say they're looking for a proven concept or strong credit ask what specifically they are looking for. Other than maybe a tax office I can't think of anything that would go in that small of space. Nonetheless, make an offer and include everything you can to prove your case. ", "replies": [{"id": "dqxvxis", "text": "By &lt;600, I just meant 595 SF :)  \nThanks, I'll ask my agent to get clarification. As of now the mgmt for the property responded with \"is this for an existing concept or a would they be a startup?\" (and skirted answering what the rental rates are). Would 'proven concept' have to explicitly mean that I've already implemented this with success or can it be that the 'concept' has been executed successfully by someone else and I'm recreating it...  \n\nFriend B who is now turning a profit after optimizing his business operations hemorrhaged $$$ every month on rent because they've a huge space that's 1800 SF. Friend A who is wildly successful (for many reasons) runs a shop that's 1000 SF, but half of it is inventory for a convenience store. It's pretty cram-packed but without the convenience store side of things I figure I could work with 595 SF.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqwnzm9", "text": "Resteraunts are tough. They require extensive build outs and most fail. Most people do not understand that it is going to take about 6 months to year to do a build out and meet health code ect. Can you pay rent for 6 months without any income, how about a year? \n\nSince you have no credit, the landlord is going to require you to do your own TI work. Do you have the 300K to build out the space ? What contractor are you using? \n\nThe location, the parking, the foot traffic will make or break your resteraunt. So desirable locations are in high demand. The landlord is likely to go with the safest choice, and if he has a broker, that means the broker is going to be the one to screen the tenant so trying to impress the landlord is moot. \n\nThe broker wants someone who will not leave in 6 months after making no money, then he has to evict the tenant and then he looks bad in front of the landlord, who pays him. He wants the safest choice, he does not get paid more or less depending on how well your restaurant does, so what incentive does he have to take a chance? \n\nI would work with a tenant broker who can screen you and make sure you have everything ready to go. It will then be the reputation of the tenant broker who will vouch for your business model. \n\nResteraunts and retail are different. YOu need to negotiate everything. EVERYTHING. Where is your sign located, what hours are you open, even WHAT FOOD YOUR ARE ALLOWED TO SERVE, can be spelled out in the lease. \n\nHow many paring spots you get, when you can get deliveries, who pays for water and trash, do you need a grease trap installed? How about hood fans? Is the bathroom ADA complient? Are you going to serve alcohol, can you serve alcohol (500 feet of school or park, depends also on restrictions of local municipality). \n\nStaffing, workers comp, refrigeration, there are a lot of things that go into it and nailing them down makes you safe. \n\nHow long has the space been available? Why did the last place go out of business, what is the landlords strategy? \n\nMaybe he wants to lease it up and sell it, and having some no name business in there is going to make it harder to sell, even with higher rent. \n\nThere are so many variables that go into a decision, \n\nGood luck man, it is a long and tough process.  \n\nWas the space already a resteraunt? ", "replies": [{"id": "dqxfe9s", "text": "Thanks for the detailed post, brother (or sister). Fortunately, I have two friends who opened and run the same type of restaurant, one of which required 7-8 months to complete his build-out, so this length of time is something I am conscious of and am prepared for, but hope to avoid with this location. This friend was successful by most standards, I believe, being able to operate using his revenue streams at break-even before turning a profit after 1 year. My other friend was *wildly* successful from the get-go. They each spent approximately 100k and 80k from start to grand opening, respectively. I hope to stay within that budget, but have over-budgeted. This location has nearly all the equipment I would need and could potentially save me a lot of capital in that regard. My uncle is a very handy contractor and skilled craftsman and who will help me. I *know* he'll do excellent work because he already has for my family in the past and he won't be coming to me one month before grand opening time demanding a higher budget for the build-out.  \n\nYou're right that I need to impress the tenant broker and not the landlord--I incorrectly used 'landlord' as a catchall term, but it's a property management group that I need to pass the screening for. I guess the chance I'm hoping for an opportunity to at least give a pitch on why it'll be successful and show I have direct experience in a wildly successful restaurant of the same concept although I was not a owner there myself.  \n\nYou make a good point about needing to negotiate everything because after researching, I learned I even need to negotiate for parking spaces and look for opportunities to save in operating costs (such as not paying for window cleaning on the 2nd floor which is more expensive if I'm on the 1st). Fortunately, this cuisine will not require a hood fan or complicated ventilation.  \n\nI inquired with a neighboring tenant about the space vacancy and I believe it has been 6 months. The previous tenant was a franchise of a relatively big pre-packaged healthy meal planning company. I'd imagine their default may make the landlord more 'particular' and tougher in the screening process moving forward.  \n\nIt was not a full-blown restaurant previously (I think the space is too small for full-service), but has the requirements I need such as a 3 compartment sink, commercial fridge, multiple drink fridges, etc. Obviously, I'd need an inspector and thorough examination to get the full picture of what changes I'll need to implement but from the outside it looks as if I just need to bring in a freezer and signage.", "replies": [{"id": "dqxl3f9", "text": "Get your uncle and walkthrough the space as soon as possible.  You want his eyes and experience looking at the existing improvements. \n\nOther than that you are doing the right things, but you may still be beat out by another user.   Why? Landlords want a proven concept and a credit user. Even franchisees for national concepts can be a tough sell.  \n\nOne thought - and I say this without knowing your concept - don\u2019t go small just to save rent.  People like to sit down and the store feels more busy/open/etc. \n\nI have worked with several franchisees of national restaurant brands and it seems like new franchisees always want the store as small as possible to minimize expense, but they sometimes do so to their own detriment. One group I worked with wanted 1200 sf stores, but the franchisor has 800+ locations and has found that stores of 1800 sf performed the best. \n\nAlso keep in mind a 600 sf vacancy may be extremely small potatoes for the landlord AND for their broker.  It\u2019s may be a big deal and a lot of money to you, but not to them.  So make it as easy for them to deal with you as possible without being absurd. ", "replies": [{"id": "dqxu0pc", "text": "Hi, thanks. I will definitely have my uncle do a walk-through if I can get as far as getting a tour. At this point I am waiting for my agent to come up with an angle on how to spruce up my background as he's saying that's our 1 shot at passing this initial screen, so to speak. My agent's of the opinion that the property management really want someone with more experience.  \n\nDescribing the concept here on reddit isn't too big of a deal but I'm just a bit paranoid on the off chance that the property manager VP I'm dealing with may come across this o_O. \n\nMy opinion of the 600 SF unit being perfect is based on my friend's shops... the gent who is beginning to turn a profit after 1 year runs his business in a 1800 SF unit. The other runs his in a 1000 SF unit... and on top of that, literally half their shop is aisles of inventory for their convenience store side of things. I'm going without aisles of beer, cigarettes, snacks, so I figure 600 SF would be sufficient.  \n\nAlso, may I ask clarification on 'proven concept'? Is it insufficient for me to say \"hey, I worked at my friend's shop, they did X concept, I learned the ins and outs and have the recipes and can implement the same thing here\". Or does 'proven concept' in this context need to constitute \"I've already found success doing the same thing at 3 other locations\"?", "replies": [{"id": "dqynodm", "text": "Proven Concept + Experienced operator/owner is the ideal tenant.  Operator with existing locations is going to be preferred. \n\nYes, you want to point out your friend's shop as a specific example.  \n\nBring or deliver sample product to the property manager/broker/landlord etc - offer to cater lunch for their office.  Basically, don't just tell them how tasty your product is - let them taste it.  If your friend is OK with it even invite them to meet you at his shop.\n\nWe always invite prospective landlord's to meet our tenants at the tenant's existing locations if they are unfamiliar with them.  Conversely, when we are evaluating a tenant we will go eat at their existing restaurant/shop their store/etc. ", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "dqyir6h", "text": "Property management groups are more cut and dry. They don't have to worry about losing the listing like a broker would and are not as much commission focused. \n\n600 SF is tiny, so hopefully it will work for your business model, and it will be less risk for them if you blow out, not like you are paying 32K a month to rent it. \n\nBest of luck", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]