Question about 5 year lease w/o guarantee for future

[callin_on_ya]

A landlord offered me a nice deal on a 5 year commercial lease and wouldn’t budge on the length. I was hoping on 10-20 because I would have had to make substantial improvements to the building. They told me not to worry, and that they would renew, but couldn’t tell me for how much it would be after the term. They also said they would not be out to steal my business or anything, and that we would work out something fair.

As someone who would prefer costs written out on paper, does anyone have a créative solution to handle this besides “run”?

It’s a great location and i’d like to try to start a business there.

Follow up: when do leases usually kick in if you have to wait for city approval, construction, etc.

Thank you for the help.

 

[charles72]

@callin_on_ya

when do leases usually kick in if you have to wait for city approval, construction, etc.

Usually when certificate of occupancy is received, but can be negotiated. If you are putting in substantial improvements, landlord is being unreasonable about the limited term. Negotiate for options to renew every five years with rent increases tied to an index like inflation. Or walk.

 

[callin_on_ya]

@charles72 yeah, this is why i walked but after not finding another space over the last six months i was thinking about going back to see if they would negotiate.

the rate they were offering is good. i wonder if instead i simply doubled the rent if that would work for them. it will take some creativity i think.