When is the best time to lease a restaurant?

Give yourself more time than you think you need. A good rule of thumb is six months to find a location, sign a lease and, another six months to permit, remodel, and open for business. Louis Pastor said that more than a century ago, and it remains true when you lease a restaurant.

Are there any problems with leasing a restaurant?

If you are planning to lease a restaurant, there are dozens of details that can go wrong. With a little planning and insider knowledge, you can minimize your risk. The first problem most restaurateurs face in their journey to lease a restaurant is caused by unrealistic expectations.

How long does it take to negotiate a restaurant lease?

Lease agreements range from just a few pages to more than 150 pages in length. If you addressed the major business and economic issues thoroughly during the LOI stage, the legal issues in the Lease can usually be worked through. Lease negotiations can take anywhere from a few days to a month.

Do you need a real estate agent to lease a restaurant?

If you are going to lease a restaurant, there is a 99.9% chance a commercial real estate agent or broker will represent the landlord. Whether you decide to hire your own broker or lease a restaurant on your own, it’s important to understand the role of the commercial real estate broker and how they are compensated.

Why is it so hard to lease a restaurant?

With a little planning and insider knowledge, you can minimize your risk. The first problem most restaurateurs face in their journey to lease a restaurant is caused by unrealistic expectations. Time can be your biggest ally, or your greatest foe when you lease a restaurant.

How long does it take to lease a restaurant?

Lease agreements range from just a few pages to hundreds of pages in length. Lease negotiations can take anywhere from a few days to a month. “WARNING: This is a legal document. Many restaurateurs cut corners at this stage to save money.

Is there an option to renew a restaurant lease?

You may, however, be able to negotiate an option to renew that will allow you the opportunity to continue to extend your length of time in your space. As a restaurant owner, try to negotiate a longer lease and an option to renew whenever possible. Know the average commercial rent in your neighborhood.

How long does a commercial lease usually last?

Commercial landlords tend to follow either a 1-2 year or 3-5 year lease agreement, and in hot markets they will likely not waver from their agreements. You may, however, be able to negotiate an option to renew that will allow you the opportunity to continue to extend your length of time in your space.