Ways to Incentivize Landlord to secure a commercial lease?
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[{"id": "glsgxkk", "text": "you could always try increasing the security deposit", "replies": [], "depth": 1}, {"id": "glshcrj", "text": "Low tenant improvement demands, longer term, higher lease escalation rates, promising extension options, there are lots of areas to negotiate on a commercial lease. Your revenue might be too small for such an expensive lease, especially after expenses. If you're making only $100K-$150K in sales it might be better to look into coworking spaces with rentable offices and/or conference rooms. The landlords are probably worried that if your sales drop by 10-20% that you won't be able to pay your rent.\n\nThe question is why were you turned down? Did they tell you why?", "replies": [], "depth": 1}, {"id": "glsplqg", "text": "Any idea on why you've been turned down the first two times?", "replies": [{"id": "glssg84", "text": "Not surprising they can\u2019t find a LL. Annual revenue/profit mentioned in the OP can\u2019t support $2300-2600 per month in rents.", "replies": [], "depth": 2}], "depth": 1}, {"id": "glsta3x", "text": "100K in profits, and the rent is 31K.  His rent just sucked up 1/2 of your cash flow after you pay your taxes.  He's wondering what happens when you need cash to expand.\n\nWith only 2 years of business, your business isn't  \"seasoned\"....maybe those were just great years. (Or maybe....he thinks.....a 67% net profit isn't actually possible unless you're selling drugs...hell, even Microsoft struggles to hit their margins of 37%).\n\nHe doesn't want more money from you, he wants to know the money you're offering today will be there in 3 - 5 years.\n\nIt's not that he doesn't trust you....he doesn't trust your numbers.\n\nTwo years in business, generating a 67% margin...I wouldn't trust your numbers either.\n\nHelp him understand your numbers.\n\nYou're an attorney, and you're struggling *this* much to make your case, more importantly, discern what the actual case is?\n\n*(Hmmmmmmmmmm).*", "replies": [], "depth": 1}, {"id": "glswhkp", "text": "Offer a letter of credit equal to LL\u2019s out of pocket expenses (it will freeze your cash). \n\nGive him a right to terminate you. \n\nSince you\u2019re start up, select a location that is less expensive. Basically slum it for a while until you build a track record. \n\nWeWork or other shared office concept?", "replies": [], "depth": 1}, {"id": "glsxmae", "text": "I would get a baller office in a co-working space.", "replies": [], "depth": 1}]