Leases and landlords

[Tom S.]

Hi everyone!

Has anyone leased their space using a revenue-sharing concept with
their landlord or is everyone on a standard term lease? It seems
apparent that every coworking space needs some time to get to that
break-even point, so instead of getting into too deep of a financial
hole, we have thought about offering our landlord a percentage of our
revenue. If we reach our max capacity, then we will be able to pay
10% over the current market rent, but at the same time, as we grow to
that point, we will not be saddled with a growing amount of debt or
dipping into our own wallets as much. It would seem in today's tough
market, landlords would be willing to receive something instead of
nothing especially if there is an opportunity of extra profit on the
other end. Just a thought....

Tom from Savannah

[Mike Pihlman]

I have the best landlord in the world.

Pure accident that I came here, but, I have gotten such a good deal from
him wrt rent, he put ads in a local magazine for all of us in the
building, he takes the time to come in and chat, offers encouragement,
fixes the little things that go wrong that my handyman skills can't fix,
etc etc.

I help him with his computer occasionally, take in his oversized mail,
let him hold meetings here, etc etc.

What he also gets are people coming in his building that normally would
not, and he knows that these folks are potential customers once they
leave the TVO. It is telling that in these rough times only one office
in this building is empty....and I want it....can't get it, but....maybe...

Mike

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--
Mike Pihlman
TracyVirtualOffice
"A Coworking Community"
95 W. 11th Street, Suite 203
Tracy, CA 95376
Mobile: 209-608-4340
Web: TracyVirtualOffice.com
Twitter: @TracyVirtOffice
Skype: tracyvirtualoffice1

[Tara Hunt]

Also check with Matthew Wettergreen of Caroline Collective...they had a pretty decent early arrangement in ramping up. 

Tara

tara 'missrogue' hunt

Book: The Whuffie Factor (http://www.thewhuffiefactor.com)
Blog: HorsePigCow: Marketing Uncommon (http://horsepigcow.com)
Twitter: http://www.twitter.com/missrogue
phone: 514-679-2951

[Matthew Wettergreen]

I saw this earlier and earmarked it to revisit, need to finish up holiday cards tonight but I'll explain our arrangement with our landlord tomorrow.

Jerome Chang also has an interesting perspective on rent abatement from an earlier post that I'll link to when I circle back.

--
Matthew Wettergreen, Ph.D
Caroline Collective
Co-Founder // Co-Director
4820 Caroline st // Houston // TX // 77004
http://carolinecollective.cc

Rice University
Engineering and Design for Art and Artifact Conservation (EDAAC)
Program Director
http://edaac.rice.edu

e: mwette...@gmail.com
w: http://matthewwettergreen.com
c: 713.825.4613
t: @organprinter

[Mike Schinkel]

I found someone willing to give me a building until we had met a target number of members. Of course we were not ready to expand so didn't take up his offer. You just have to find the right building owner; you might get "no" 100 times before you get 1 "yes." So while it's not the norm a good entrepreneur can make, persistence is key!

-Mike

[Scott Tillitt / BEAHIVE]

Yes, you absolutely can engage landlords -- especially if you sell them on the idea.

We have a true partnership with one of our locations (our second). As I mentioned in my last post re: partnerships, I joined with a regional magazine that owns the building.

We have a partnership agreement, not a lease. We split expenses (except regular supplies for the space). They get revenues after expenses up to a set amount for rent, utilities, regular supplies, etc. Then we split revenues beyond that.

Now, I know the publisher and told him about the idea just before I opened the first one. It fits in with their ethos. BEAHIVE has a civic/community-building dimension in the vision that goes beyond most coworking spaces (beyond building a tech community or freelancer community or whatever) -- and this magazine has been building community in the region for 15 years. So it's a perfect fit.

And the landlord at my first space also bought into the idea. I have a standard lease with her (though I did negotiate the first month free to help with cash flow), but she goes beyond what a normal landlord would do. She's basically an honorary member and, in fact, is more engaged than most of our actual members. Of course it behooves her to help us succeed -- but it goes beyond that.

scott.

  - --    -

SCOTT TILLITT

PR yogi / writer / community catalyst

[ sc...@beahivebeacon.com  /  917.449.6356 / Twitter: @bluehwyflaneur ]

BEAHIVE

collaborative workspace + community

sign up for BEAHIVE Bzzz

[ www.beahivebeacon.com  /  Twitter: @BEAHIVE ]

ANTIDOTE COLLECTIVE

socially conscious communications for a better world

[ www.antidotecollective.org ]

  - --    -  t h i n k / f e e l  -    -- -

...an idea or product that deserves the label 'creative' arises from the synergy of many sources and not only from the mind of a single person.” (Mihaly Csikszentmihaly)

On Dec 23, 2009, at 3:15 AM, coworkin...@googlegroups.com wrote:

 Topic: Leases and landlords

"Tom S." <tss...@aol.com> Dec 22 01:02PM -0800 ^

[spacelogix]

My suggestions may be to negotiate with the landlord for some free
upfront rent so as to give you a few
months to get some revenue flowing. Negotiate a clause as well that
only holds your responsible for
a potion of the lease if something happens. i.e. sign a 3 year lease
and make only 2 years you will be held responsible for and then roll
into the final year. Landlord's are hungry now. Not sure about this
time next year
however. And as always make sure an attorney reviews the lease.

Thanks

Darryl - Space Logix

[ourspace...@gmail.com]

Through a networking opportunity, I was given a chance to met my
current business associate. This individual had a training center
that was situated in a medium sized building in a decent location.
Thus, I have worked out an agreement with him and his landlord to
complete some profit sharing. However, I except to be completely
filled within 6 months, and will be looking for my own space.

Thanks,

Jodi Dean