What location are you in? I have some experience in b&m retail. My first business I got zero TI (build-out money) second one around 30k and third just under $70k, my latest build, the landlord is not giving me money (All my spaces are around 1200sqft). I've gotten first month rent free and 3 months half rent also. It depends on a lot of factors and what condition you are receiving the space (new, empty aka cold-dark-shell or a vanilla shell or a vacated space). Also has something to do with how hot the location is and what concept you are bringing in.
I would strongly suggest a commercial real estate broker. Typically, they would find you the space and you don't have to pay them as they get paid a commission by the landlord when you close the deal. The trick is to find someone you can trust and always push them for more. Alot of these brokers will just push you to take the first offer, negotiate the hell out of the space and ask for the impossible. always negotiate the lowest rent as they will most likely always counter offer and ask for as much TI as you can. Be creative in your negotiation, nothing is impossible as most brokers will lead you to believe. But it's for sure a give-and-take. The stronger your concept, the more they are willing to negotiate.
Here are a few tips off the top of my head:
-negotiate the first month(s) free rent or half rent, or both whatever you can get away with. It helps tremendously in those first few months when you are still building up your clientele and getting things going.
-talk to neighboring tenants who moved in during the peak of the recession and ask how much rent they are paying. Make sure to ask as many as you can as you will get different answers.
-find a trustworthy commercial/retail re broker, you might have to interview a few
-***DON'T SKIMP OUT ON AN ATTORNEY TO REVIEW YOUR LEASE - sorry for the caps, but this is friggin' important. save money on other things but do not save money on this, pay what it takes to get the best quality.. Trust me, I would have been screwed by funky things on those 70-100 page leases if I did not have a quality attorney. depending on landord, they might even insert things as for you to install things you don't need (good example: grease traps), or upgrade your electrical service just for the benifit of future tenants, have your monthly sales reporting sent certified by a CPA instead of just a personal cert, admin fees, minimum staffing, minimum hours, etc, etc.. this is probably the most valuable advice I can give you. listen to it
-Find a GC (General Contractor) and get at least 3-4 bids and references before signing a contract
-Make sure to lock down an "exclusive" with the landlord if you are selling a specific product or service.. lets say I am opening a nail salon.. I would ask for an exclusive that no other tenants that provide the services (or goods that you are selling/specialize in) can come in.
-Every landlord asks for atleast 3% rent increase after the first year. Try to make it so it happens in the 3rd or 4th year or not at all.
There are alot of other misc things, but these are the only things I really remember right now.. Just PM or feel free to ask here.
I would strongly suggest a commercial real estate broker. Typically, they would find you the space and you don't have to pay them as they get paid a commission by the landlord when you close the deal. The trick is to find someone you can trust and always push them for more. Alot of these brokers will just push you to take the first offer, negotiate the hell out of the space and ask for the impossible. always negotiate the lowest rent as they will most likely always counter offer and ask for as much TI as you can. Be creative in your negotiation, nothing is impossible as most brokers will lead you to believe. But it's for sure a give-and-take. The stronger your concept, the more they are willing to negotiate.
Here are a few tips off the top of my head:
-negotiate the first month(s) free rent or half rent, or both whatever you can get away with. It helps tremendously in those first few months when you are still building up your clientele and getting things going.
-talk to neighboring tenants who moved in during the peak of the recession and ask how much rent they are paying. Make sure to ask as many as you can as you will get different answers.
-find a trustworthy commercial/retail re broker, you might have to interview a few
-***DON'T SKIMP OUT ON AN ATTORNEY TO REVIEW YOUR LEASE - sorry for the caps, but this is friggin' important. save money on other things but do not save money on this, pay what it takes to get the best quality.. Trust me, I would have been screwed by funky things on those 70-100 page leases if I did not have a quality attorney. depending on landord, they might even insert things as for you to install things you don't need (good example: grease traps), or upgrade your electrical service just for the benifit of future tenants, have your monthly sales reporting sent certified by a CPA instead of just a personal cert, admin fees, minimum staffing, minimum hours, etc, etc.. this is probably the most valuable advice I can give you. listen to it
-Find a GC (General Contractor) and get at least 3-4 bids and references before signing a contract
-Make sure to lock down an "exclusive" with the landlord if you are selling a specific product or service.. lets say I am opening a nail salon.. I would ask for an exclusive that no other tenants that provide the services (or goods that you are selling/specialize in) can come in.
-Every landlord asks for atleast 3% rent increase after the first year. Try to make it so it happens in the 3rd or 4th year or not at all.
There are alot of other misc things, but these are the only things I really remember right now.. Just PM or feel free to ask here.