5.X — Before You Sign #
Every space looks bigger when it’s empty and you’re excited. That is the worst possible condition for making a lease decision.
The feasibility study happens before you fall in love with the space — not after. A 2,500-square-foot footprint could seat 80 Guests or 50 Guests depending on its shape, its code requirements, and what your concept actually needs to function. That difference in seat count, compounded across every shift for the life of the lease, is not a rounding error. It is the margin of the entire business. Bring an architect in before you sign — not to design the space, but to tell you the truth about it.
Beyond the footprint, five things belong in every lease negotiation before you commit:
HVAC. New energy codes require significantly more outside air ventilation than standard retail. A restaurant in a warm climate may need nearly double the HVAC tonnage of the retail tenant that occupied the space before you. That cost belongs in the lease negotiation — not in your opening budget.
Kitchen exhaust. The hood has to exhaust through the roof, at least ten feet from every door, window, and fresh air intake. In a multistory building that means running a shaft through every tenant space above yours. Know the routing before you sign. Negotiate the cost before you commit.
Electrical service. Standard retail runs on 200 amps. Even a modest restaurant operation needs 400. The power company may run additional lines, but the trenching and site repair are negotiable. Know what you need and get it in writing before the lease is executed.
Roof penetrations. Restaurants punch more holes in a roof than any other tenant type — hood, gas, bathroom exhaust, fresh air, HVAC. Each one is a warranty risk. The cleanest solution is to have the landlord coordinate roofing work directly, keeping the original roofer on the job and the warranty intact. Structure it in the lease.
Timing and grace period. A retail tenant can design, permit, and open in 90 days. A restaurant cannot. Developers typically allow 60 to 90 days before rent starts. That is not enough. Negotiate a grace period that reflects the actual pre-opening timeline — or budget for months of rent before you serve a single Guest.
