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July 14, 2007 4:31 PM quote 
LindaB is offline LindaB
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 Building lease - standard cost per square foot?
What is the "going rate" for leasing a building to a restaurant? I am thinking in terms of a 'per square foot' rate.

Thanks
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July 14, 2007 5:23 PM quote 
drsmoke is offline drsmoke
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Depends on location, and about 1000 other variables.
Beauty is in the eye of the beer holder ! :beer:
July 14, 2007 9:05 PM quote 
The Cat Man is offline The Cat Man
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Could be anywhere from $26 per square foot to well over a hundred.
Throw in tenant improvement money, common area maintainance, a break even agreement, nad as DrSmoke alluded to, 1000 other variables.

If you want a high demand location that others are competing for, you lose leverage, especially if you're a start up. If the landlord is desperate for a tenant, and a food anchor, then you're in a much better position.

I would suggest you get a commercial broker to do the legwork for you
The Cat Man
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July 15, 2007 9:33 AM quote 
LindaB is offline LindaB
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I am just trying to get an idea. Our company, AP, owns the building and land. AP also bought the equipment for the restaurant.
Now that the restaurant is going and in the black (finally!!), we would like AP to be paid a standard lease amount.
We want the lease to amount to include property tax, insurance, etc..

Is there not some sort of general standard?
July 15, 2007 11:06 AM quote 
dinerminer is offline dinerminer
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If you own the building, land, etc., you know what those expenses are already. Cover your expenses, add in a little extra for administration and don't bleed the restaurant dry.
July 15, 2007 2:49 PM quote 
LindaB is offline LindaB
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Yes, of course.

But, what is standard? What could we expect to pay somewhere else?
Cat Man mentioned 26.00 a foot. Is that a starting place?
July 15, 2007 3:25 PM quote 
nowIamone is offline nowIamone
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Linda, this is an item to get the tax accountant involved in. We review this type of item every year. The accountant may have an opinion on how much to move to defer losses or gains.
July 15, 2007 11:04 PM quote 
The Cat Man is offline The Cat Man
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LindaB wrote:
Yes, of course.

But, what is standard? What could we expect to pay somewhere else?
Cat Man mentioned 26.00 a foot. Is that a starting place?


Linda, things are a little clearer now, but still vague. Greedy landlords have put many restaurants out of business in the past, although you sound pretty fair and reasonable.

The only real guage is to find out what the going rate is in your market with similar establisments and arrangements. Also, don't ignore the residual value this restaurant brings your (stripmall?) with regards to foot traffic etc.
The Cat Man
July 16, 2007 12:03 AM quote 
LindaB is offline LindaB
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thanks Catman,

MAybe I have not made myself clear. It is my restaurant. I am also the landlord. Two separate companies, I am owner of both. I am not going to be unfair or greedy. Why shoot myself in the foot? We just need to have everything on the "average track". Not too much and not too little.

Thanks again.
July 16, 2007 8:36 AM quote 
bassrocker4u2 is offline bassrocker4u2
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 i hope this help you some........
;)
Business Friendly Fortuna California invites you to
COMPARE BUILDING LEASE COSTS BY CITY




There are many business costs that vary from city to city; and an important one to compare is the cost of the building. What is it costing you per square foot for the building your business is in now? Want to see how it compares to communities in Northern California and Southern Oregon?

Not only will you see that Fortuna, California has economical retail space for sale and for lease -- it is so much more affordable than many, many other locations.

COMPARE COMMERCIAL PROPERTY SAVINGS *

A rural move can also save your bottom line on real estate costs. In a survey of communities around California and Southern Oregon, rural business sites like the city of Fortuna, California saved light industrial companies as much as 39 cents a square foot a month on leased space and as much as 96 cents a square foot a month on leased office space!



COMPARE BUILDING LEASE COSTS BY CITY

Examples from our survey* of small communities in California and Oregon:


INDUSTRIAL SPACE FOR LEASE

Fortuna, California average .55/square foot per month

Benicia, California average .94/square foot per month

Grass Valley, California average .73/square foot per month

Medford, Oregon average .57/square foot per month

Healdsburg, California average .59/square foot per month


OFFICE SPACE FOR LEASE

Fortuna, California average 1.08/square foot per month

Benicia, California average 2.04/square foot per month

Grass Valley, California average 1.33/square foot per month

Medford, Oregon average 1.57/square foot per month

Healdsburg, California average 1.40/square foot per month


RETAIL SPACE FOR LEASE

Fortuna, California average .68/square foot per month

Benicia, California average 2.42/square foot per month

Grass Valley, California average 1.34/square foot per month

Medford, Oregon average 1.41/square foot per month

Healdsburg, California average 2.36/square foot per month

*based on a survey of current properties for lease or for sale and recent sales in the listed communities conducted in March 2007


this info copied from:

http://www.fortunabusiness.com/compare-leasing-costs.html
All times US/Eastern. Current date and time: October 31, 2014 6:22 AM



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