I have been getting quotes for tenant improvements; they range from $85 to125 per a square foot for a generic 1500 sq foot coffee shop.
My first reaction is that this is a lot of money to put in to a leased space.
What has been your experience with cost for tenant improvements?
Has anyone bought the dirt and built or bought a location and improved it?
What all does this include? Is the landlord providing you an allowance? I think the landlord should be paying for items attached to the shell that are not associated with your specific business, IE. bathrooms, HVAC, general electrical like a new panel and outlets.
This has been my experience.
Deals vary with as many deals are made in the world.
If you can get it, ask the LL for a TIA (tenant improvement allowance), press for as much as you can get from LL.
If not, how about rent abatement? Or free rent for X amount of months?
If you want to buy land and build, it will almost certainly cost you more than $125sf. But $85-$125sf isn't bad for a buildout - especially if you can save on construction costs and squeeze in some equipment for that.
Ask for the sky dude, I got a lot more than I was "offered" All they can do is say no. Good luck man
It depends on the local real estate market, the particular building and its location and last, but not least, the disposition of your landlord. Your broker should be your best guide to what landlord concessions are typical in your community.
Just out of curiosity, why are you building a "generic" coffee shop? What's the plan behind that?
Sounds about right. I know of some that spend twice that.
Tom - I don't know what it's like down in Tucson, but up here we are full of generic coffee shops. We don't need anymore. You should go for amazing. Wow 'em. If 1500 sq ft is too much, downsize to control cost. We've had too amazing shops open in the last couple of months, both are smallish - one is only about 200 sq ft. Or do you need the space for roasting? Anyway good luck!
Wow 'em them yes,Genetic as in I do not have a space and are developing a business plan . no charo star 4 big bucks
Thank you everyone
I guess it all depends where you are.....and what you are including. Are you talking the building and all attached (shelves, sinks, flooring, deck, electrical, etc..) but not your appliances, furnishings, equipment? I am rebuilding my shop after a total fire loss. I am going into a new building, completely gutting it at my own expense and then building my new shop. We may be in similar circumstances . . . ? I have lots of experience on the tenant side~