Visited the New Space for my Bookstore...

Several of you have asked me about the potential for a new space for my bookstore.

I was able to get into the space I am interested in this week. It's nice...

My current space is 15' x 48'. The new space is 15' x 105'!

Needs new carpeting, a paint job, some lighting work, and a new doorway into the business next door.

It is adjacent to a coffee house and a bagel shop. There is a pass-thru into the bagel shop, and will ask for one into the coffee shop.

Negotiations on price and lease begin tomorrow. Anyone have suggestions in this regard?

:hi:

RL

p.s. http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=105x7194884

That's my suggestion. :D

Come, I show you...

:D

RL

:blush:

RL

that don't come with instructional DVDs or accompanying props. Is that not ok?

but I'm the world's worst negotiator

It would help to know who you're negotiating with... the bagel store? the coffee shop? Someone else who rents to both of them.

If it's a 4th party, you may do well to form some sort of coalition w/ the other two renters. You may be good business for each other.

I'm asking for:

Carpet
Paint
lighting
A new doorway into the coffeeshop
Completion of an unfinished wall in the back hallway
2-3 months of free rent to get established.

RL

so, what happens if after 2-3 months of free rent (if accepted) your biz bombs? How long of a lease are you interested in?

My thought, if you want 2-3 months rent for free, maybe you could deal with the carpet and paint yourself. Seems like a reasonable trade off for a few months free rent.

I'll handle the carpet and paint.

Or extend the lease.

or maybe if not free rent, have a graduated rate, and pay less year one and more in say year 3.

:hi:

RL

a 'Percentage Lease' clause in lieu of a graduated lease. It is commonly used in retail leases.

Offering the landlord a minimum fixed monthly rent amount, plus an additional amount, a percentage of the tenant's gross receipts exceeding a determined amount.

Example: $500.00 fixed monthly rent, plus 5% of the gross income when the gross monthly receipt total exceeds $5000.00.

I would initially ask for paint, carpet, and any other needed repairs be made by the landlord.
Limit your initial expenses as much as possible. This type of clause in the lease will help you to minimize start up costs while ensuring that if/as you profit the landlord will also profit. If it was me, I would not offer to extend the lease or offer a graduated rental amount. Those type of agreements are not suited for a small independently owned retail store... unless you have one hell of a crystal ball.

Good luck to you, sir!
I'll be hanging around all afternoon/evening if you want to shoot me a PM.

BTW, I had asked for your input on your "So what are you guys reading?" post. Could you offer some suggestions?

:hi:

:hi:

RL

and a kiddie section. Oh don't forget the store cat!!!!

Got some cushy chairs and a sofa.

Will have a kiddie section, with kiddie seating (beanbags, small tables & chairs)

No cat. Alergies...

:hi:

RL

allergic, and I honestly don't know what I would do if I had to give up having a cat due to allergies. My condolences , but also my extreme congratulations on the new space. Sounds awesome.

Good luck on the next step in your Adventures in Bookselling.

I work with two commercial real estate brokers. They deal primarily with new leases and new construction (so there are fit-outs and tenant improvement allowances) but occasionally they must re-lease a space. They're nice to me as I'm the one who writes their commission checks. ;)

Check your emails tomorrow.

:hug:

:hug:

RL

;)

Kidding...

Our rents have 5 parts:

Base Rent

Common Area Charges which include:

Property Taxes
Insurance
Common Area Maintenance
Management Fee

Most of our tenants pay their own utility bills and the landlord pays the electricity for the outdoor lights, etc. Some properties have water sub-metered so you wouldn't have to pay into what the coffee shop and bagel shop use in water.

Tenants are sometimes given a sign allowance for exterior signage if the landlord wants control over sign look and design. Once it's up, the sign is the tenant responsibility.

These are just a few things I've got floating around in my head.

:hug:

On edit, this may cost *you* big. :evilgrin:

and paying...

:D

RL

we can come up with terms both parties can agree on. :evilgrin:

And unlike student loans and credit cards these payments won't go on forever, unless of course...

:evilgrin:

:evilgrin:

RL

That sounds like an ideal location, RL! No suggestions come to mind...but will it be an all purpose type bookstore, or will it be divided into subject matter...fiction, history, current events, etc?

The best of luck to you! It is always a pleasure to hear of someone opening a bookstore. :-)

With more space, comes better organization (I hope :D )

RL

1. Prepare a typed list of all your expected move-in and fix-up costs. Always go a bit high
to benefit your side. Include expected maintenance, electric, alarm and heating costs if
appropriate.

2. Do you know if it is a triple-net lease or a standard rental lease?
If it is triple-net ask for your obligations in writing before negotiation.

3. If you haven't done it yet, talk to your neighbors to confirm their support for you as a
beneficial neighbor and let property owner know you are a benefit. It is such a good tenant match.

4. Propose an excellerating lease to give you the opportunity to invest in renovations, etc with a
low first year rent and a 5% or 10% increase over the next two or three years of the lease.

5. Ask for an option to renew that provides you with a way out in case the project doesn't work out.
But, be sure to include a specific renew rent amount to protect you. This has a lot to do with
the basic rental proposal.

6. Let it be known that you are a strategic partner in the owner's property and want to design
an agreement that creates a win-win outcome.

7. Finally, always opt to allow your attorney to review the document before signing. Provide a
contingent on attorneys approval clause.

Hope that helps.

;)

We have tenants who take posession of the space (obligation is utilities only) and they begin paying rent when they open for business. This is within a fixed time frame to protect the landlord and hold the tenant to a schedule...

Thanks!

RL

...What was the business there before? For a book store, I can't image two better neighbors.

The same 2 stores are together in another suburb with a bookstore next to them.

:hi:

RL

...and judging from your posts over the past few months, you're due a break like this.

How exciting!!!!!!! Don't forget to have a separate poetry section (and frequent poetry readings, too.
You could put up notices at all the nearby colleges. Poets LOVE to have their work heard, ya know?).

wanna come by and be a guest reader?

:hi:

RL

:hi:

RL

RL

the local bookstore did the same thing and they now carry kids books and toys. hope to get up there in the next couple months..i may have a decent job in another month..

:hi:

RL

included a percentage of receipts -- it just about killed me.

i would NEVER do that again.

straight rent and rental increases -- not to exceed a set percentage per annum.

my two cents.

the first few months rent free are perfectly reasonable -- as are upgrades and basic fixes to the space.

you already know that you can use them as negotiable items -- BUT it is in his/her best interests to have the space rented.
and the bookstore really offers terrific continuity to the existing stores.

you are in a good position here.

:hi:

RL