Leasing Restaurant and Lounge Space

December 1, 2021

Learn Commercial Real Estate

Commercial Leasing

It is the middle of the week with wonderful opportunity ahead of you.

We took a couple of weeks off to regroup and now we are back.

We had a request from several superstars in our community on helping Cafe and Lounge owners with their business space needs.

I decided to revamp the Restaurant / Cafe / Bar series we did last June.

It is really so wonderful to be rocking with you all for so long.

Before we get into the good stuff. I would like you to stay encouraged during the holiday season.

Deals may slow down a bit, as people focus more on the holiday. Just keep going.

As the world continues to turn: restaurants, cafes and bars will make their way back into action.

It is your opportunity to benefit with your tummy and your wallet.

Welcome to Commercial Real Estate Leasing. LOL

Restaurants - Cafes - Bars fall under the Retail Asset Class in the 4 main classes types in Commercial Real Estate.

We are going to refer Restaurants - Cafes - Bars = RCB

RCB's requirements (a specific type of need for a space) are very interesting and require a lot of Due Diligence. From confirming the zoning to understanding if the opportunity includes a business for Lease or just the space for Lease.

If it does include an actual business for lease in addition to the restaurant...well that is a whole different menu of items to consider.

Small Differences that make a Big Difference

Restaurants require "HOODS" for cooking, drainage, grease traps, freezers, liquor licenses and more.

Cafe with simple foods require no hoods but sufficient running water, drainage, etc.

Bars require Liquor License Permits which relate to zoning and hours of operation., security measure on premises, etc.

Point of Views

As real estate professionals in commercial leasing we look at each transaction with two point of views (POV)

1. From a Tenant Representative point of view. Needing to understand your client's requirements, and putting them first. We also understand what the Landlord needs and wants to get the deal done by doing our Due Diligence.

2. From a Landlord Representative point of view. Understanding that although the Tenant may want the space / property......YOUR ABSOLUTE MAIN FOCUS AND LOYALTY is to the the properties Ownership and their best interests.

What Remains the Same.

No matter what type of RCB requirement you are working with here are 4 things you must understand and take note of as a Real Estate Professional in Commercial Real Estate:

1. Understand the area where the space is located. Read more about the market. Understand the "city's" view of the area. Understand the "neighborhood" view of the particular property or space. Does the location have a bad reputation that only the residents in a 3 block radius know?

2. Find out more about the Landlord / Property Owner.

Where does the Landlord live? Was this property an investment play for them or did they actually operate the space at one time?

3. Research Zoning Laws and Restrictions. Check out your local commercial zoning information on your city/county/town website. Zoning is so important.

4. Understand the Nuisance Laws and Regulations for the property/area.

It is true Commercial Real Estate Deals take a bit longer than Residential Real Estate. Just as a Realtor who has been in the industry for a long time begins to know which houses are being sold / purchased / renovated in their farm area = the same a Commercial Agent knows who owns which buildings and what businesses are moving or closing.

Remember this is leasing, not sales or purchasing so the closing time is faster and commissions more lucrative. Leasing is the low hanging fruit of commercial real estate. It is the easiest barrier of entry into commercial real estate, but it is the most guarded. There are many books on multi - family and land investing and house flipping. There are lots of articles on being a developer or an investor, but not much in how to do commercial leasing on different property types and deal segments.

The Due Diligence part contributes to the LONG TERM GAME OF playing commercial real estate Monopoly in real life.

I also want to update you on the Learn Commercial Real Estate Membership platform that will enable you to learn commercial leasing and begin practicing what you learn in real life to close deals. You'll have a fantastic support group and community through a private Facebook group.

There will be monthly masterclasses, LIVE teaching, mentorship, coaching and worksheets, templates and Q&A's and help with social media and marketing, guest experts and more. We focus on: