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Thread: Lease Question

  1. #1
    Join Date
    May 2005
    Location
    East Bay
    Posts
    4

    Lease Question

    Let's say you find the right location and property for your brewpub and you are ready to negotiate the lease. How do you determine the period of the lease, 5, 10, or 15 years, etc. and more importantly, how do you keep your business if you become successful? I mean what would prevent the landlord from simply booting you out and running essentialy the same business you just spent years building or someone else offering the landlord more money and running the same business?

    Thanks for any input.

  2. #2
    Join Date
    Dec 2004
    Location
    Mukilteo, WA
    Posts
    304
    Nothing.

    It can happen and I've seen it here in Seattle with the closure of La Boheme. The landlord refused to extend the lease, then opened his own place afterwards. It's a gamble, and really doesn't happen all that often.

    I would ask for a 15 year if you could. We got a 10 and we're racing up on it with a flakey relationship with our landlord.

  3. #3
    Join Date
    Feb 2004
    Location
    Dexter, MI USA
    Posts
    203
    Hello,

    I also could tell stories of unhappy brewery -- landlord relations. I currently lease my brewery location, and as much as I may like it, when my term is up (shhh...) I hope to be in a position to buy a building of my own. Not always possible, I know, but it is kind of a bite to be putting investments in / adding value to a property when you could have the rug yanked out. Building sold, rent increases, non-renewed leases, uncooperative landlords, it can, and does all happen.

    So my advice, try to buy a building. If that is not possible (it wasn't for me), unless you know your potential landlord real well, go for the short term, with a renewal clause, and have a real estate type lawyer look it all over. I know places that have gone out of business well before their 10 year term was up, and well ... let's just say litigation ensued.

    So things are going well, the landlord is cool, re-up, if not move. Its a pain, but can be done. For sure.

    Just an opinion,
    Aloha,
    Ron
    (PS Not that I'm having any of the above problems!) (Yet!) (Knock on wood!)

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