lease

[laundror]

I am trying to buy existing coin laundromat which has 5yrs lease left in the big shopping center, but landlord says they will not give a new 15 yrs or 10 yrs new lease that I requested, they just can give the remained lease, which is 5 yrs. after 5 yrs, no one knows what happends...maybe they will give or not, even give maybe so higher...

My understanding is coin laundromat lease better be at least 15 yrs, but in this case, I should not buy this business due to this lease problem??
Thank you for your advise...

[DaveLevenson]

You should probably walk away from this one. If you buy it, the price better be low enough that you can fully amortize your purchase in five years or less.

[laundror]

You should probably walk away from this one. If you buy it, the price better be low enough that you can fully amortize your purchase in five years or less.

I asked the person who works for lease department of this shopping center, but told me just orally "you will get GOOD chances of getting new lease after 5 yrs"....
But refused to give new 10 yrs with 5 yrs option now.
They said, this is case by case....,not the general rule...
but they not telling me the specific reason of why....
maybe be they will give new lease after 5 yrs??
too much "risky", right?

[Fred50]

RUN, don't walk. This business is worthless without a good lease. You can't trust the landlord to renew with a decent lease in 5 years.

What if they triple the rent in 5 years after you've built up the business?

What do you do then?

The lease is the main consideration when buying an existing business and this one is a big problem. The landlord may want to get into the laundry business or they may just want to screw over the current owner.

This will be a tough sell, but someone will probably buy it and pay too much. Don't let it be you!!



I asked the person who works for lease department of this shopping center, but told me just orally "you will get GOOD chances of getting new lease after 5 yrs"....
But refused to give new 10 yrs with 5 yrs option now.
They said, this is case by case....,not the general rule...
but they not telling me the specific reason of why....
maybe be they will give new lease after 5 yrs??
too much "risky", right?

[laundror]

RUN, don't walk. This business is worthless without a good lease. You can't trust the landlord to renew with a decent lease in 5 years.

What if they triple the rent in 5 years after you've built up the business?

What do you do then?

The lease is the main consideration when buying an existing business and this one is a big problem. The landlord may want to get into the laundry business or they may just want to screw over the current owner.

This will be a tough sell, but someone will probably buy it and pay too much. Don't let it be you!!

I see...
I thought this is a good chance...
unfortunately, the reality is not that happy picture...
yes, I agree, who knows after 5 yrs.....
if landlord want to give new lease in 5 yrs, why they not giving it now...
maybe something WRONG here...with current tenent or shopping center itself....they want other biz in this spoace or they want re-modeling this area...whatever...

too sad....
anyway,thanks for yout advise