Thanks all. Your euggestions are excellent ones. One additional question, have any of you considered exchanges whereby someone may be willing to exchange their home + working space for a period of time?
On Fri, Jan 20, 2012 at 2:12 AM, Jerome Chang <[email protected]>wrote: > In broker terms, free rent is "rent abatement". Rent abatement, [less] > security deposit, TI [tenant improvement] allowance, etc. are all "lease > concessions". All those are just different ways you can generate favorable > lease terms. Some landlords are more willing to give cash equivalent terms > (ie., rent abatement) than actual cash (ie., TI allowance). A broker will > sniff out those motivations. > > > Jerome > ______________ > BLANKSPACES > "work FOR yourself, not BY yourself" > > www.blankspaces.com > ph: 323.330.9505 | 5405 Wilshire Blvd (2 blocks west of La Brea) Los > Angeles, CA 90036 > > On Jan 19, 2012, at 11:10 AM, bruce edward Whitaker wrote: > > Thank you all. Wonderful advice! > > We have been offered 3 months free rent because of the situation of the > landlord - the space is above an old railroad station and hasn't been > rented for almost two years. I am thinking that we can propose a 1 year > lease and keep the 2 year as a back-up to get more favorable pricing. > > As for an investment in furnishing the workspace, we are entering into an > agreement with the local municipality/economic development and a government > funding source for corporate memberships allowing them to use the space > within defined parameters. This way we don't have a loan and can get > recurring rent from them each year. > > Like your idea of a full service lease making the prediction of cash flows > that much easier. > > Also appreciate the comment around security for the doors. > > Will also factor in the security deposit. Thanks. > > Does anyone have a lease template as the landlord has asked me to make an > offer? > > Bruce > > On Thu, Jan 19, 2012 at 1:29 PM, Bruce Yang <[email protected]> wrote: > >> In regards to leases, wouldn't it be better to get a longer term lease? >> >> Let's say you get a 1 year lease at $40sf. Then a year passes and market >> rates go up to $43, then $45 etc. That can have a very real and huge impact >> on your space. the economics rapidly change with even a few dollars per sf >> change. >> >> Invesment: Let's assume you spend $20K on furnishing your new coworking >> space. There is almost no way you can earn back that amount in the first >> year. If you have to move after 1 year, you have to start all over. >> >> A good reason to get a short lease is If you have put a personal >> guarantee on the lease... That's scary and a 1 yr lease lessens your >> liability. >> >> Try to get a full service lease. That simplifies planning by a lot. You >> basically pay 1 amount for "everything". >> >> Also don't forget to consider security deposit. For a company with no >> operating history and no assets, a landlord might ask for 6 months security >> deposit. A sublease might ask for 1-3 months. >> >> I'm curious about months of free rent. Is this normal? How many free >> months did you guys get? >> >> Bruce >> >> On Jan 19, 2012, at 12:06 PM, Angel Kwiatkowski <[email protected]> >> wrote: >> >> > Best if you have a commercial Realtor. It's never too late to get one >> > to help with your lease negotiations. >> > - length of lease (1 or 2 years). >> > I think a new space should try to get as short as possible. Our first >> > 2 leases were each 1 year. Now that we're more established, we are on >> > a 2 year. >> > - is insurance included and what does it include? >> > You'll likely need to get your own insurance to cover your belongings >> > in the space. You can also have your members who leave property in the >> > space get their own renter's insurance >> > - what about taxes and utilities. >> > You'll need to be real clear about what extras you have to pay on top >> > of rent. I've been lucky to get a "Gross" lease each time which means >> > I write one check each month and it includes, rent, utilities etc >> > except internet which we pay for separately. A NNN lease can be a >> > nightmare especially if they don't have an accurate estimate of what >> > heat/gas/electric/water/trash might cost each month. A NNN lease can >> > add almost 50% extra to the price of your monthly rent. Landlords also >> > pass their property taxes and building improvements on to you in a NNN >> > so they make me real nervous most times. >> > - improvements to be included. >> > Yes, you'll need to make sure that each party's responsibilities are >> > fairly and accurately represented. What out for phrases like "tenant >> > will pay for any repairs or maintenance on plumbing, heating, >> > electric." <----also a crappy part of NNN leases. >> > - months of free rent. >> > Of course. >> > - security of location. >> > Try to get your landlord to buy the access system that you choose for >> > the building. You likely won't take it with you when you leave. My new >> > landlord threw down $2,000 for our electronic locks b/c he knows he'll >> > keep them if we leave and it makes his property management easier with >> > multiple tenants. >> > - etc., etc. >> > >> > Long story short--get a commercial Realtor. You won't pay them >> > anything, the landlord will :) >> > >> > On Jan 17, 2:43 pm, bruce edward whitaker <[email protected]> >> > wrote: >> >> We are about to put in an offer on a vacant space to house a new >> >> coworking group. Any and all items to include in the offer would be >> >> very much appreciated. Some that I can think of: >> >> >> >> - length of lease (1 or 2 years). >> >> - is insurance included and what does it include? >> >> - what about taxes and utilities. >> >> - improvements to be included. >> >> - months of free rent. >> >> - security of location. >> >> - etc., etc. >> >> >> >> Even better if anyone has a lease I would love to see it. >> >> >> >> Hoping everyone is well today. >> >> >> >> Bruce >> > >> > -- >> > You received this message because you are subscribed to the Google >> Groups "Coworking" group. >> > To post to this group, send email to [email protected]. >> > To unsubscribe from this group, send email to >> [email protected]. >> > For more options, visit this group at >> http://groups.google.com/group/coworking?hl=en. >> > >> >> -- >> You received this message because you are subscribed to the Google Groups >> "Coworking" group. >> To post to this group, send email to [email protected]. >> To unsubscribe from this group, send email to >> [email protected]. >> For more options, visit this group at >> http://groups.google.com/group/coworking?hl=en. >> >> > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/coworking?hl=en. > > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/coworking?hl=en. > -- You received this message because you are subscribed to the Google Groups "Coworking" group. 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