The hospitality and restaurant industry can be a fickle place. Everything from customers’ whims to national events can affect its success, which means new owners assume significant risk in opening such an operation. Nevertheless, you can set your Silver Spring, MD, restaurant venture up for success by contacting The Genau Group for real estate representation and management. Our team can help you locate a suitable space, negotiate a restaurant lease agreement, and more.
The Genau Group team comprises real estate advisors with over 100 years of collective industry experience. Our founding members were all born and raised in Washington, DC, so they understand the forces at work in this market. Moreover, our clientele ranges from small start-ups to international organizations with offices in numerous countries. To learn more about our commercial real estate team and its services, call (202) 735-5382 or visit our website.
Below, we outline comprehensive instructions for leasing a restaurant space:
Finding a Space
The process of choosing a restaurant lease space is similar to that of selecting a general office venue. For instance, start by setting a budget, as you must know what you can afford before you choose candidate properties. Doing so will also help you narrow your options and focus on spaces within your price range. Since the cost of leasing a restaurant space can be significant, you must attend to this step.
Next, identify what you need and want in a restaurant space. Researching potential places can help you to do so—we suggest going online, looking through print ads, or contacting a commercial real estate broker. Critical factors include:
- Location: Your restaurant should be in a high-traffic area with ample visibility and accessibility. Its surroundings should contain complementary businesses, such as retail shops and other restaurants.
- Size: The space’s size should suit your type of restaurant and its target market. For instance, a fine dining establishment requires more space than a casual eatery. The space should also have enough room for a kitchen, dining room, storage, and restrooms. If you plan to expand your restaurant, choose a space with room to grow.
- Layout: Your restaurant’s layout will depend on its target atmosphere and clientele. You must balance function against comfort, so the kitchen should be close to the dining room but far enough to dampen its noises and odors. The dining room should be comfortable and inviting, with enough space between tables for customers to move around and converse.
- Condition: Like all buildings, restaurant spaces must meet legal codes before they open to the public. Beyond general sanitation and proper maintenance, they should have adequate ventilation, plumbing, and electrical service. These factors also contribute to the space’s ambiance, creating a dining experience that customers will savor. The décor, lighting, and music should align with the restaurant’s concept and target market.
- Parking: Finally, adequate parking is essential for any restaurant. If your space has no parking lot, ensure ample street parking is available.
Negotiating the Lease
After pinpointing a space, you must lease it from the property owner to use it. This step is where a commercial real estate broker can help, as they will have relevant experience and knowledge on typical restaurant lease terms. That said, keep some negotiation tips in mind so you can follow the process:
- Don’t be afraid to walk away. Until signing the lease, you have no legal responsibility to concede anything.
- Be prepared to compromise. You may need to give up some features you like to secure the critical elements your business needs.
- Get everything in writing. Once you’ve reached an agreement with the landlord, make a record of it. Doing so will protect you from future confusion and disagreements.
Prove Yourself a Promising Tenant
Leverage a few strategies to improve your chances of leasing an ideal restaurant space. First, create a restaurant business plan to share with the landlord. Doing so emphasizes your sincerity as a business owner and outlines how you plan to succeed. Likewise, put your finances together and show the landlord you can afford rent.
Also, collect some professional references. The landlord may want to speak to your previous landlords or other business owners who can vouch for your character and reliability. Speak to your real estate broker or attorney for tips on who can provide such references.
Once you have a space leased, start on renovations and keep up with property maintenance. Obtain the necessary permits before you begin any work, then waste no time making renovations. Knock them out so you can open your restaurant.
Restaurant Lease Services for Silver Spring, MD, Residents!
Opening a new dining establishment comes with numerous challenges and possibilities. Nevertheless, you can build your venture on sturdy foundations by turning to a commercial real estate broker skilled in restaurant lease negotiations. Locate a choice Silver Spring, MD, property with The Genau Group, the DC region’s premier commercial real estate brokerage. Call (202) 735-5382 or visit our website and learn how our realtors and advisors can help you.