Aliza My gut reaction is that the landlord is thinking either of two things
1) he/she believes that the real estate market is improving and that effective market rates in 18 months will be higher than today - so she wants to have the ability to increase rates and/or 2) he/she is unsure about the business that you are proposing for the space. Either of these possibilities are things that your real estate agent (and you) can and should surface directly with the landlord. If "1)" is the issue, you might be able to negotiate a schedule of predefined rate increases, that give the landlord the comfort that the rate can rise with the market. If "2)", then you have some more selling to do... and there is a great case to be made for the positive impact of Coworking spaces on buildings and the local business district where they reside. Best Mark On Mon, Aug 20, 2012 at 12:28 PM, Alex Hillman <[email protected] > wrote: > Do you have any indication from the landlord on their reason for not > providing a renewal option? > > -Alex > > -- > /ah > indyhall.org > coworking in philadelphia > > On Monday, August 20, 2012 at 1:26 PM, Aliza Torok Schlabach wrote: > > Hi everyone, > > I am curious about what kind of basic lease structures you all have (or > had when starting your spaces). There's a space I'm interested in, and I > can get a very good rate ($10/sq ft/yr, gross) for 18 months, but the > landlord will not give me any kind of renewal options... which means I > could get booted from the space after a year and a half. Right now it's the > only compelling location on the table. Since I'm trying to incorporate > child care into my plans, the space requirements are much tricker than for > straight up coworking; I've been searching for a building since March and > haven't had any luck yet. > > The landlord will pay for installing 2 bathrooms and a kitchenette (a bare > minimum to start up the space). The only other work I'd really need to do > is painting and installing some new lighting. There's another floor that I > would love to expand to if all goes well (another 5,000 sq ft with 3 > bathrooms and a kitchen)... but there's no guarantee that I'll be able to > do so. > > My real estate agent doesn't recommend doing it - she says I'm too exposed > to risk with this deal. Wanted to hear all of your thoughts... > > Thanks! > > *Aliza Schlabach* > Founder > Coworking for Parents (soon to be "Juice Box") > www.CoworkingForParents.com > <[email protected]> > 215.858.4658 > Sign up for our email newsletter <http://www.coworkingforparents.com> | Join > our Meetup group <http://www.meetup.com/CoworkingForparents/> | Like us > on Facebook <http://www.facebook.com/CoworkingForParents> > > > > -- > 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.
