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Restaurant BizTalk

A forum for restaurant owners, managers, and other industry professionals.

5,935 Discussions and 46,496 Posts
LindaB Joined
Jul / 2004

Building lease - standard cost per square foot?

What is the "going rate" for leasing a building to a restaurant? I am thinking in terms of a 'per square foot' rate.

Thanks

drsmokeJoined
Feb / 2007
drsmoke

Depends on location, and about 1000 other variables.

The Cat ManJoined
Jan / 2007
The Cat Man

Could be anywhere from $26 per square foot to well over a hundred. Throw in tenant improvement money, common area maintainance, a break even agreement, nad as DrSmoke alluded to, 1000 other variables. If you want a high demand location that others are competing for, you lose leverage, especially if you're a start up. If the landlord is desperate for a tenant, and a food anchor, then you're in a much better position. I would suggest you get a commercial broker to do the legwork for you

LindaBJoined
Jul / 2004
LindaB

I am just trying to get an idea. Our company, AP, owns the building and land. AP also bought the equipment for the restaurant. Now that the restaurant is going and in the black (finally!!), we would like AP to be paid a standard lease amount. We want the lease to amount to include property tax, insurance, etc.. Is there not some sort of general standard?

dinerminerJoined
Mar / 2006
dinerminer

If you own the building, land, etc., you know what those expenses are already. Cover your expenses, add in a little extra for administration and don't bleed the restaurant dry.

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