Landlord is not willing to assign the lease to a new buyer of a restaurant. What will be a creative way?

There are 3 years left on the original lease and option for 5 years. We will like to renegotiate the lease term if possible before the purchase of the business.
In Leasing Property - Asked by Joon L. - Jan 8, 2012
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Answer(s)

Al G.
Mahwah, NJ

Joon,
Unless the Tenant has the absolute right to assign the lease without Landlord's consent, you may not have many options. One question is whether you are a better credit risk than the current Tenant. If you can prove you are the more viable tenant (via financial statements, landlord & bank references, business experience, etc) the Landlord may be willing to work with you. Also, find out if the current tenant has been late with rent, or has had any problems with the LL. If so, you can out yourself in a good bargaining position. Landlords simply want good tenants who will pay the rent, run a good business, and take care of their premises. Show them you will do that and you will be in a position to get what you need for your business.
Ken Fioretti
Crossroads Companies
crosscomm@optonline.net

Jan 9, 2012
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J. David F.
Broker/Agent
Brentwood, TN

Most leases have a right to sublease therein. Write it up as a sublease, then at the end of the initial term approach the LL with a new tenant offer and notify of no intent to renew by primary tenant. That will force the LL into looking at the "new" tenant- who now has a proven track record. It will not get teh current tenant off teh hook entirely for the remaining 3 yrs but will put things in place to do so later.

Jan 9, 2012
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Thomas A.
Broker/Agent
Rochester, NY

if the Tenant wants the space bad enough,offer an upfront higher or non-refundable deposit or an option/assignment price to the Landlord to renegoiate the Lease. The Buying restaurant owner could then offer the Selling restaurant owner less on the business sale because he didn't have an assignemnt or sublease clause in the original Lease (which makes it automatically less valued) and use that money to pay-off the Landlord. Good Luck.

Jan 9, 2012
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David S.
Broker/Agent
Bloomingdale, IL

Offer a 5 year lease. This gives you the option of negotiating the terms beyond the old lease. Superior credit over existing tenant required.

Jan 9, 2012
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Michael L.
Broker/Agent
Ellicott City, MD

Your solution is simply. What is the LL's long term plan for the space?. Is there a better use for the restaurant space.? Is that the reason the LL will not make a deal with your tenant?
Also the current Tenant cannot convey more than 3 years so, for a longer term you must sit down with the LL.! All purchase agreements must be contingent upon this occuring.

Jan 10, 2012
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