How to Negotiate a Commercial Lease (Full Guide and Terms)

Рет қаралды 20,597

Күн бұрын

Learn how to negotiate a commercial lease with ease! This got me 7 months of free rent on my first retail commercial lease negotiation. I got 3 months of free rent on my office lease as well.
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TIME STAMPS
0:00 Intro & Leases this video applies
2:19 Profitable in less than 2 months
3:08 Who this video is for
4:02 Have attorney Review Lease
5:59 How much space do you need?
8:28 How much can you afford?
11:12 Location, Location, Location
13:13 Lease Term
16:40 The different types of Commercial Leases
19:56 Main points of Lease Negotiation (Price per sq ft, TI, Free rent, Lease Term, Parking, CAP)
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Пікірлер: 94

@TariqJohnson 3 жыл бұрын

Where are you in the lease process? What tips/advice do you have for everyone?

@soyourrealtor Жыл бұрын

Can you do a video on how much you can get paid from a lease if you bring in the business for lease or ownership

@mannyregalado7167 2 жыл бұрын

For not being a CRE broker you touch on a great amount of specifics that CRE brokers don't go over on their vids. There are a great number of other details, and I believe in placing caps even on MG leases, but this commercial broker gives you a thumbs up. Cheers from Chicago.

@TariqJohnson 2 жыл бұрын

Hey thanks Manny! I'm certainly not a licensed professional. Just a guy try to help people based on my experience :) Thanks for your rubber stamp of approval...I have a surprisingly decent amount of haters. 😀

@Rose-re9tn Жыл бұрын

MG Leases? MG, is standing for what?

@suzanneconway863 Жыл бұрын

Very informative and helpful. Thank you!

@rbambizzle 3 жыл бұрын

Great video. Thank you for sharing the advice.

@TariqJohnson 3 жыл бұрын

Glad it was helpful!

@nikagregg3597 3 жыл бұрын

Hi Tariq, I have been watching your videos. Very informative. Thank you very much for the details and sharing your process.

@TariqJohnson 3 жыл бұрын

My pleasure! Thanks for watching.

@mamiseadrien1631 Жыл бұрын

Great advices. On point with everything. Thank you for your generosity.

@TariqJohnson Жыл бұрын

Thanks for watching!

@erickahill6579 3 жыл бұрын

Great video! Right on time!!!

@TariqJohnson 2 жыл бұрын

Glad it was helpful!

@myrazn18 Жыл бұрын

Love this content! Invaluable!

@TariqJohnson Жыл бұрын

Awesome!

@jackflash6920 Жыл бұрын

Very helpful Tariq. I really appreciate you for providing this information. Thank you.

@TariqJohnson Жыл бұрын

My pleasure! Thanks for watching.

@ivannyrodas439 10 ай бұрын

Great experience and perspective! Gives me more confidence and eases any nerves. Thank you for you knowledge and help!

@TariqJohnson 10 ай бұрын

My pleasure.

@billreddy7593 Ай бұрын

Appreciated ! I'm actively looking for commercial space and will be signing a lease shortly.

@TariqJohnson Ай бұрын

Best of luck!

@ministermarionjones3172 Жыл бұрын

Thanks for this much needed video. I am in the process of looking for an event space. I appreciate you for sharing. God bless you as you continue to build your businesses. 😀

@TariqJohnson 8 ай бұрын

Wow, thank you for your kinds words and likewise!

@Livelearnapply 2 жыл бұрын

Thank you so much for all the information.. thanks

@TariqJohnson 2 жыл бұрын

My pleasure 🙂

@Moxeebrewcompany 6 ай бұрын

Helps a ton. Best I’ve seen so far. Thank gou

@TariqJohnson 6 ай бұрын

Awesome! My pleasure

@DeniedApprovalStore Жыл бұрын

Great video bro! this really helped a lot. Im currently typing an email to negotiate our lease & I wish i could ask you how i should start this email. I know what we are looking for but maybe a video on how to actually word/present your negotiation. A lot of the verbage is new to me so even tho i know what i want, if they call me i might acidentally stumble on my word or freeze up. Just my struggle but maybe more can relate. Great video

@jamesgreen7679 6 ай бұрын

Very very helpful. Thoughtful and practical guidance. Thank you for putting this together.

@TariqJohnson 6 ай бұрын

You're very welcome!

@faithe8337 Жыл бұрын

Very informative!!

@TariqJohnson 8 ай бұрын

😀

@prscap 8 ай бұрын

Great video! Very helpful as I'm in the process of opening a very similar franchise.

@TariqJohnson 8 ай бұрын

Glad it was helpful!

@DreamwalkerTenesha 2 жыл бұрын

Thank you for the advice. I'll be looking for a retail space for my soap company by the end of this year

@TariqJohnson 2 жыл бұрын

Awesome, good luck!

@soyourrealtor Жыл бұрын

Nice job

@MikeHoubba Жыл бұрын

Great pointers given Tariq. Good video! Thumbs up. I am a fair landlord. I don't hate caps but also not a fan. A hybrid floor/ceiling may be a better option.

@TariqJohnson Жыл бұрын

Thanks and glad you are one of the good ones!

@Jubilee_BX Жыл бұрын

Great Content!!! Thank You. Where is the link for the legal advice website that can be paid monthly? I don't see it on the drop down list.

@wi8855 10 ай бұрын

I’ll use all the advice if possible on my new business

@TariqJohnson 10 ай бұрын

Awesome!

@tracyharrison678 9 ай бұрын

Currently looking at my first ever possible commercial lease for child care business. Helpful video, especially the emphasis on capping the increases and on working with a lawyer. What legal subscription service would you recommend, and would you trust that for the child care industry?

@sindysacoman6942 3 жыл бұрын

Hi Tariq- thanks for the info. What % cap is good for future increases? I’m trying to get a space like your smaller office and trying to see what caps look like

@TariqJohnson 3 жыл бұрын

Future increases on rent or on CAM costs? Overall if it's a full service lease- 3% is pretty standard in my experience.

@milagillaspy3578 Жыл бұрын

Very useful information. Currently talking with a leasing agent, and wanted to know as a first time business owner do you need to have already formed an LLC before signing on a retail space? Or do you do that part after? I know when you file papers for the LLC it asks for an address which is causing some confusion.

@TariqJohnson Жыл бұрын

Just put your home as your address, and change the address to the LLC later. Typically you would want the lease to be assigned to your entity.

@kendrabruce 9 ай бұрын

You mention a legal subscription service in your video, but I don’t see the link? Would you mind providing that link? Thank you!

@invertilandia1266 10 ай бұрын

Do you have any videos with recommendation about opening a smoothie business?

@TariqJohnson 10 ай бұрын

I used to own smoothie franchises. Peep my channel , you'll land on a bunch of me talking about it.

@350spear Жыл бұрын

I knew it

@SafiyaJ 2 жыл бұрын

Is it best to do a 3% cap on the rent increase or Renewal based on CPI? Also what cap would you suggest on CAM

@TariqJohnson 2 жыл бұрын

The way inflation looks these days, I’d say 3%. CAP on CAM depends. Hire a real estate attorney- they can help with looking at your specific lease.

@Kmillions77 2 жыл бұрын

Thanks for the video. I wish it was clearer the view points are winded and not detailed enough

@TariqJohnson 2 жыл бұрын

Noted, thanks.

@ld2290 6 ай бұрын

This is a valuable video! Thank you. I would like your book to help me start my business. I appreciate it in advance.

@TariqJohnson 6 ай бұрын

Glad it was helpful! You can go to franchiseempire.com to book a 15-minute intro call. 😃

@mikesiyoum6690 11 ай бұрын

You look Ethiopian brother. Love your video and helpful ps

@soldbypattyr7786 2 жыл бұрын

How much do landlord normally pay brokers ? Just to have a general idea when bringing this up.

@TariqJohnson 2 жыл бұрын

3% of total lease value

@adrianavazquez8379 2 жыл бұрын

tips start at 4:03

@TariqJohnson 2 жыл бұрын

👍🏾

@Kmillions77 2 жыл бұрын

Thank you lol

@socaltravelball 6 ай бұрын

Good information. I want to negotiate a lease on my own. The lease is 3800 per month. I am not using an agent. How many months do you think that would equate to for me? I am thinking 3 or maybe 4 months of free rent. What do you think?

@TariqJohnson 6 ай бұрын

Depends on the lease term. They typically get 3-5% on the total value of the lease. So a 5 year term is 228k in rent, which is about $6,840 to $11,400.

@ketagreggs3357 2 жыл бұрын

Thanks Tariq for the information! I don’t see the subscription legal team link. Could you tell me the name of the company.

@TariqJohnson 2 жыл бұрын

johnsont58.wearelegalshield.com/

@ketagreggs3357 2 жыл бұрын

@@TariqJohnson Thanks!

@ashleyd9853 6 ай бұрын

I have a service based business and moving out of my first starter unit (full service lease) and I'm trying to find another one but bigger and it's so much more difficult. Any advice of how move from 1st place to 2nd and with switching lease types. I feel like switching to an NNN lease is going to be biting off more than I can chew.

@TariqJohnson 5 ай бұрын

I don't really know enough about your situation, business, finances, etc to provide any advice on that. What I can say is that having a high fixed cost on a lease is hard to get out of, so make the decision wisely.

@alowamamba4568 2 жыл бұрын

Your 3 reasons for watching sounds just like Patrick Bet-David’s lol

@TariqJohnson 2 жыл бұрын

Haha - that’s one of the greatest compliments you could say to me 🙂. Love PBD

@evelenfaustin6856 Жыл бұрын

I learned a lot from this video. I just submitted a lease application but I’m afraid they are going to take advantage of me because I am new to this industry. It’s for a tire shop. I saw a space online and the broker showed it to me. He said there are 2 broker fees.That does not sound right to me. He wouldn’t tell me who the landlord is. If he is working for the landlord why should i pay the fees?

@TariqJohnson Жыл бұрын

Sounds weird. I always recommend hiring a commercial real estate attorney.

@jharris3429 Жыл бұрын

I have a slight similar question. I contacted a site for lease online, and a broker emailed me back( vague ) info regarding the space. Would that broker be the one I would sign with or would I need to find my own . They asked for an offer letter, but it left me clueless on what to do?

@jennifer4196 2 жыл бұрын

I'm going to be opening a salon and spa next year, in a mall in an empty salon. I didn't like the profit percentage they want and taxes. How do I get out of that.

@TariqJohnson 2 жыл бұрын

Talk to the landlord and worse case a real estate attorney.

@Msbusinesss 2 жыл бұрын

So what was the $45/month legal company called? I don't se eit in the description

@TariqJohnson 2 жыл бұрын

Hi Debbie, johnsont58.wearelegalshield.com/

@Rims8 3 жыл бұрын

Salam sir, hope you are doing well, sir I am looking for a restaurant in Texas but I don't live in USA but I have legal permission for doing a business. How can I find a good restaurant in a prominent location. Do you know any website or Facebook page where restaurant owners are selling there properties. I am interested to take lease.

@TariqJohnson 3 жыл бұрын

Biz buy sell is a great resource to find existing businesses for sale. I also help my 1 on 1 clients find businesses, and guide them step by step through the process. Reach out to me if you want my help.

@mirlorealestatepartners5892 2 жыл бұрын

@@TariqJohnson A business owner should hire a real estate attorney who specializes in lease negotiation. If you want the best protection and to transact at the highest level, there is no substitute.

@randaloopy Жыл бұрын

Where's the link for the $49/mo attorney access??

@TariqJohnson Жыл бұрын

Hi Randy! Here's the link johnsont58.wearelegalshield.com/

@ministermarionjones3172 Жыл бұрын

I said I was going to use LegalShield. Thanks!

@kravmagaCDK 8 ай бұрын

In other words, if you can’t afford a lawyer, you can’t afford a lease.

@TariqJohnson 8 ай бұрын

Well said!

@MiguelGonzalez-ko1ow 2 жыл бұрын

I subscribe to his channel but, I didn't like that he is advertising the legal website. If you are helping your subscribers, you don't persuade them to use the link. Just hire an attorney for all legal matters and period.

@TariqJohnson 2 жыл бұрын

I guess I don’t understand what you don’t like about it? It’s a valuable service that I believe in and have personally owned the product for over 10 years myself, and it’s helped me a lot. That’s how business works- share services that can help people and get paid for doing so. Do you know how many hours it took me to plan, script, record, and edit this video? More than you would guess.