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Moving into Your Own Commercial Space

If you're renting time in a commercial kitchen in the beginning, you'll probably need your own dedicated space once you've built up a customer base. Buying or renting your own commercial space can be daunting.

If you're planning to lease a commercial kitchen space, make sure you discuss the terms of the lease in detail with the landlord or the broker. Work with an attorney who knows commercial real estate and foodservice businesses. She will know what to look for in the fine print and find problems before you sign anything.

There are a few different types of commercial leases. In a net lease, the tenant pays monthly rent, which includes the additional costs of taxes, maintenance, and insurance. A net lease, or a double net lease, means that the tenant will pay rent and will cover all costs except structural repair. A triple net lease holds the tenant responsible for paying monthly rent plus all additional expenses including structural repair, except possibly roof repair.

You may need to make modifications to the space to get it up to code to meet current state regulations if the building hasn't been well maintained or hasn't been used recently as a commercial kitchen. Do all your research on zoning laws and regulations in your area and hire a local construction consultant who knows his way through all the red tape. Your commercial kitchen will need to have the correct fire and smoke alarms, ventilation and plumbing systems, and lighting, and may need to comply with other regulations to pass inspection and be licensed.

Alert

Whether you're offered a net lease or a triple net lease, everything is a matter of negotiation. You and your attorney must read the fine print. Every lease is different, and it is up to you to contest any provisions in the lease with which you disagree.

Find out about past tenants and why they left. Ask neighboring businesses, the local police precinct, and the local chamber of commerce about the landlord and the condition of the space. You need to know about any potential problems before you sign a lease.

  1. Home
  2. Starting and Running a Catering Business
  3. Considerations as You Grow
  4. Moving into Your Own Commercial Space
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