Restaurateurs face seasoned professionals trying to get tenants at the highest possible rate. Restaurant owners don’t have to go through the leasing process more than once or twice.
To help you lease the space of your dreams, we are listing some key considerations below.
1. Budget
Before you even start looking for a restaurant space, your first step should be to establish a budget you can afford. Make sure you have the funds needed to rent a room. If you don’t have the cash in hand, look into other financing options.
Don’t fall in love with a space before crunching the numbers and ensuring that it fits your budget. Securing a location that you adore but can’t afford could risk you falling short on paying for your other startup costs.
2. Location
Make sure the location matches the concept of your restaurant. Take into consideration your target market and whether or not the location you like can generate enough foot traffic for your restaurant. So, take your time, and search for the right spot where you can easily reach your target customers.
3. Space
Do your due diligence and make sure the space is ample enough for you to run your business. Space always matters regardless of what kind of restaurant you have. The bigger your space, the more ideas you can implement in your kitchen or dining area. Thoroughly inspect the building and see if you need to renovate and how much that would cost you.
4. Background checks
Before getting serious about any space, do background checks on the landlord and some of his previous tenants. It’s better to learn about previous tenancies and if there have been any unpleasant experiences in the past. Doing so might help you make a sound leasing decision.
5. Negotiate the lease
Even if the first offer you get falls within your budget, you should always negotiate for less. The agent and the landlord might be willing to lower the price, but you can only know if you ask.
Most real estate agents expect you to come back with a counteroffer, due to which the first offer is always inflated above their desired price.
Tenant turnover, vacancy rate, and the property location all factor into your bargaining power. Once all parts of the contract are ironed out and professionally reviewed, agree on a move-in date, and finalize your lease.
