Brewpub Building Leases???

[jrdamas]

What % of total sales is your building lease (including CAM). I have read that 5-7% is normal and not to accept anything over 7%. However, all the leases I have looked at are in the 9.5% area. Also do you know what build out allowance you were given per sq foot. Is $35.00 per sq foot a good build out allowance? Any help would be great.

[jrdamas]

Come on......... I help others whenever I can--someone must have an answer for me on this one.

[BrewBoy]

I'm in the process of obtaining a lease. I've found the following... In Nothern VA, space goes for around $12/sq foot /year (... a buck a month), no utilities included.

In between Baltimore and DC, I spoke with a guy who owns and rents out several retail locations. He says that he figures a yearly lease by taking the price of the building and land and charging a lease of 10 percent of that total per year.

[jrdamas]

Thanks for the help!

[jaybee]

Newbie

Hello,

My name is Jay and I am a newbie around here ... I am curious what made you decide to look into this? I am just a fan of beer especially micro beers but the discussion is interesting.

thanks
JAY

[jrdamas]

just wanted to see if my lease was a good or bad deal. Seems that it is ok.

[kaiabrew]

CAMs

We lease in a Mall parking lot and the rent is outrageous and the CAMS are huge. Probably around 17% specially if they deceide to replace all the lights in the parking lot. The big anchor stores with 20,000 sq. ft or more are exempt from CAMS. Make sure your lease is still good f the place is sold. Be aggressive. Once you are established you will have the bargining chip! Good luck

[jfulton]

Lease

jrdamas, I am currently negotiating a lease in Fort Worth, TX. Our propsoed sales would put us at about 8 - 9% (lease/gross sales). We have a 7,000 sq. ft. spot, there will be a rather large restaurant area, and a more/less separated pub area. We are allocating $500,000 for renovating everything, down to toilet paper holders. So that figures to be about $75/sq. ft. We are doing a rather upscale interior though. I hope this info helps you.

Jamie

[jfulton]

Re: Lease

Forgot to mention that the "spot" is a freestanding building with a kitchen area, walk-in freezers and grease trap already installed. All of the HVAC and all that is already in too. Didn't know how complete your space is.....

jamie

[jrdamas]

Thank you for the help. Very useful info!

[BrianU21]

Never owed or leased a building so please excuse my questiopn, but what is a CAM?

[kaiabrew]

CAMs

Common Area Mantainace

Kind of like association fee's

The Mall repaves the parking lot we pay a portion.

Usually large anchor stores don't pay.

[knock]

This seems ok for a lease with all the amenties if you are in a medium to large sized metro area ... does the lease include utilities? will the landlord pay for any improvements?

[Butcher Scott]

The rule of thumb we are using in our startup is rent should be no more than 10% of gross revenue. I'd love to get $35 in build out allowance... I'm looking more at $22.