2017 New Grad Edition - 36

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has other advantages, including easier financing and better terms on business loans. I think it's
great that some people go out and do it, but for the average person I don't see the advantage of
starting up or buying straight out of school.
{6/5/2017}
As for the lease negotiation, the landlord has been slow to respond, and doesn't seem to know
what he is doing. For instance, he quoted CAM, tax, and insurance charges should be around
$2-$3 per square foot, which seems way off. The building will be completed and ready to go
in July, so I would think he would be eager to start getting some leases signed. He currently has
four out of six 1,300-square-foot spaces available. We plan on getting the two on the corner with
the best visibility. I've always heard the whole lease negotiation process can take a while, and it
seems like it is going to take some time for us. ■
6/13/2017

George Vaill
Member Since: 10/31/03
Post: 40 of 84

Know that unless the landlord can look to the operating expenses in another similar property that he operates in the market, his CAM numbers will simply be an estimate, made either
by him or by his agent. You may have to do some research of your own to see what kind of
numbers you find in the market for similarly operated properties.
Whatever the first-year number is, it's going to be an estimate. You'll pay your prorated share
of the estimated expenses for the first year and then, at the end of the year, there will be a reconciliation comparing the actual expenses to the amount that you paid, with an adjustment for any
underpayment or overpayment. Then the landlord will project a new estimate for the next year
and you'll pay your prorated share of that newly estimated amount. Repeat, repeat, repeat. ■
6/13/2017

adstartup
Member Since: 10/07/13
Posts: 41, 44 and 46 of 84

That is really good to know. Thank you for the information and all the insights you've
provided so far!
He is also quoting a very low amount for TI: $20,000 total for 2,600 square feet. From what
I have seen, that's pretty low. I was looking into the landlord and it looks like he has experience
with residential real estate in the past, but very little experience with commercial real estate. I am
concerned he might be difficult to deal with. Other than that, we love the building and location!
We visited it again and got pictures, and it really is exactly what we were looking for.
We got our Dentagraphics site report back this week. Dentagraphics has been great to work
with. The report was very thorough, and basically confirmed what we had already found.
The conclusion of the report said the level of competition in the area is highly favorable,
with all three scales offering over 4,000:1. Also, there is good population density and demand
for care, with a high average income) These were the biggest three things we were excited about,
and this report confirmed our findings.
What is your experience with leasing from an inexperienced landlord? Is it best to avoid it?
We really want this space, but if the landlord is going to continue causing us problems, it might
not be worth it. ■
6/16/2017

George Vaill
Member Since: 10/31/03
Post: 47 of 84

Here are a few miscellaneous thoughts, in no particular order:
1. Just because a landlord is inexperienced, that doesn't necessarily mean that he or she will
be difficult to deal with, cause problems or be a lousy landlord.
2. The landlord with whom you sign the lease today may not be the landlord tomorrow.
3. The difficulties in dealing with inexperienced landlords include such things as:
*
They often don't understand the lease concepts, the terminology, the common

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