4 ms·
I feel bad for this guy. One question: > He spent several months searching for the perfect space and landed on the 20th Street site in June 2019, signing a le
by djohnston 6y ago
I feel bad for this guy. One question:
> He spent several months searching for the perfect space and landed on the 20th Street site in June 2019, signing a lease for $7,300 a month. He hired an architect to draw up plans to upgrade the electrical and plumbing systems, build a front counter and install kitchen equipment. He planned no structural changes or modifications to the building’s exterior.
If you're leasing the space why are you responsible for these sort of renovations? Shouldn't they be on the owner to upgrade things like plumbing, electrical, etc?
- pvarangot 6y agoIt depends on your agreement with the landlord. He probably negotiated a lower rate in exchange for doing the renovations.
- sethhochberg 6y agoI've posted about it elsewhere in the comments here, but it is extremely common for commercial leases to be "shell" leases - basically, leasing an unfinished interior that the tenant customizes to their requirements. Different businesses have radically different interior needs, so if a space can have multiple potential uses the landlord often won't bother trying to commit the space to a particular business like a restaurant space, retail space, etc. Tenants get exactly their finishes and furnishings to spec, landlord doesn't have to guess how tenants will want to use the space. Others have posted about how it is also somewhat common for landlords to cover some of these conversion expenses as a concession. "Warm shell" would typically be a space which is mostly ready for occupancy, has HVAC and lighting and bathrooms, etc. "Cold shell" means the utility hookups exist but don't go anywhere and there is essentially nothing in the space.