What does a commercial landlord want to see (financials) to approve a start up co. for 5 year lease?

Want to rent a retail space for the first time, have excellent 780+ personal credit score, only about 30K in the bank, but have access to about 40K in credit lines- Rent amount (including triple net) is about $3300 per month- Only have 2 months of sales data with very limited exposure, but shows 70% profit margin on our product. Have another 30K that has already been invested (cash not debt) into specialized equipment for our biz that we purchased and now own. Wondering if this will be enough to rent to us? Landlord loved our presentation and LOI's are being sent back and forth now- Really want this store, but if our financials aren't going to be good enough want to seek out other options sooner rather than later. Any opinions on if we may be okay or not?
In Leasing Property - Asked by Beckey H. - Jan 2, 2016
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Answer(s)

Dennis G.
Broker/Agent
Pasco, WA

As a commercial broker and commercial landlord, you are well on your way. i would want to see a business income and expense statement along with balance sheet even if limited (you say two months). i would also want to see a personal income-expense statement along with a balance sheet. Any verification, such as bank statements would be helpful. In addition, do not be surprised if the Landlord asks you to personally guarantee the lease, ask for a larger than normal deposit (to protect himself against the possibility of default on the lease) due to the limited business history or asks for security such as a lien on the business equipment. Banking relationships are important and a recommendation from you banker could also help. Will you still be employed or your husband employed until your business venture takes off? Since you have no debt, you are in a pretty good position.

Jan 2, 2016
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Robert C.
Developer
Miami, FL

It will be how motivated that landlord is to rent the space, You may want to offer 1 personal guarantee on the lease. That is about 36 and that will let the landlord know you are committed.

Jan 2, 2016
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