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Renting Commercial premises

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  • 17-01-2011 10:31pm
    #1
    amn88
    Closed Accounts Posts: 36 ✭


    Hi

    I'm viewing a pub this week that is up for sale/lease. No price on it.. Open to offers. The building has been closed for 5-6 years. It no longer has a license. I would be transferring a license from another shut down pub owned by the person investing in this venture. My question is , should our offer be low since we are renting just a building rather than a pub as such.

    One other question if anyone knows much/anything about lease to buy options please let me know what you think?


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    #2
    ir555
    Registered Users Posts: 116 ✭✭ir555


    While I have no experience in this area - I am currently finalising a deal for a business in a different sector.

    Lots of landlords offering publicans in the area free rent for start up periods, assistance with kit out etc...

    Keep in mind that this building has been making nothing for the landlord in so long and most likely costing him a few quid to insure/ maintain etc...

    Some of the conditions we are putting in the agreement are below and suprisingly most have been agreed to - its a renters market!

    Landlord deducts a certain amount ot "kit out" cost from the rent - in some cases resulting in 6 months free rent.

    Get Landlord to put a value on the premises (it is no longer a business without the license). Ask him to agree to take all paid rent from this price on an ongoing basis for 5 years. New asking price to be legally documented at the end of each year.

    Conditions should be included to:

    1. Allow you to make a purchase at anytime during tenancy (asking price minus rent paid to date and adjusted for current market value if it decreased further - no increases in asking price allowed - not going to happen anyway in this climate)

    2. If a buyer appears in the mean time - unlikely by the sounds of it - you will have first refusal on the sale at asking price - rent.

    3. You do not sign any long term lease - 1 months or similar notice to break lease from your side.

    Go mad on the conditions - worst comes to the worst start to adjust/ remove some of them if needs be for discussion.

    Given the time it has been vacant you are in an excellent barganing position..

    Best of luck with it!
    D


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    #3
    Chester11
    Closed Accounts Posts: 3 ✭Chester11


    It is better to take the help of people involved in commercial premises dealings.Investing on land is always profitable but it is essential to understand the terms and conditions thoroughly and then invest.


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    #4
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    Chester11 wrote: »
    It is better to take the help of people involved in commercial premises dealings.Investing on land is always profitable but it is essential to understand the terms and conditions thoroughly and then invest.

    Umm investing on land is NEVER profitable. Isnt that what people have realised with the crash? Investing in people is potentially profitable, hence trying to run a viable business using the land as a tool can be profitable.


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    #5
    maxer68
    Closed Accounts Posts: 1,076 ✭✭✭maxer68


    ir555 wrote: »

    Conditions should be included to:

    1. Allow you to make a purchase at anytime during tenancy (asking price minus rent paid to date and adjusted for current market value if it decreased further - no increases in asking price allowed - not going to happen anyway in this climate)

    2. If a buyer appears in the mean time - unlikely by the sounds of it - you will have first refusal on the sale at asking price - rent.

    3. You do not sign any long term lease - 1 months or similar notice to break lease from your side.

    Go mad on the conditions - worst comes to the worst start to adjust/ remove some of them if needs be for discussion.

    Given the time it has been vacant you are in an excellent barganing position..

    Best of luck with it!
    D

    some of those conditions are ridiculous - one month break notice? - then its available to the landlord too, so if the pub does well, he turfs you out and gets someone else in.

    Try working it as a partnership - not all landlords are greedy. If it works for you, it works for him. Too high a rent and the pub fails and its back to an empty premises.

    In reality you need to get a local agent to work on your behalf. Also check what similar premises in other similar towns are going for. e.g. in Carlow a well located 2000 sq ft premises will rent for €30,000 - €35,000.


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    #6
    neris
    Registered Users Posts: 20,055 ✭✭✭✭neris


    We recently negotiated a lease for a premises in dublin from a big property company and were very open to negotiations and altering terms. No matter how stupid you think a clause can be put it down if you think it will benefit you and your business. If nama ar involved be prepared to put pressure on them to get things moving. Our landlord was very willing to do teh deal but nama and a certain irish bank (that used to be very quick on multi million euro deals) were slow in coming to a decision


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