new lease

[hithere]

Hello there !

I found a space in shopping center. before I sign lease, I'd like to know more information....
1) how long will it take to get "Permit" to remodel the leased space into laundromat? I know it really depends on county by county and state by state...but need to know around time...

2) As this space is in shopping center, so there is no reason county not approve laundromat, right?

3) size is 4,000 SF, roughly how much it is cost to remodel it? ( drawing, plumbing, elec, floor, wall, etc)

4) about how long it will take to set it up, from start to finish(including installation of machines)?

Landlord allow just 3 months rent waive, I think it is too short, but what do you think?

Thank you,

[Coinwash]

Use search lease new+lease




http://www.coinwash.com/mb/showthread.php?t=227&highlight=new%2Blease

http://www.coinwash.com/mb/showthread.php?t=1496&highlight=new%2Blease

http://www.coinwash.com/mb/showthread.php?t=1246&highlight=new%2Blease

[William]

4000 square feet is a LARGE laundromat. Especially since I am sure the space is a "tunnel". Figure on (just a wild guess) $50,000 to $80,000 to get it ready to set the machines. Plumbing, power, etc. Don't overlook that the current HVAC is likely inadequate.

Assuming that you can put a laundry there just because it is a strip center is dangerous.

Impact fees? Around here $1,800 per washer. A laundry of this size will have probably 40 - 50 washers.

Remember William's rule of construction: "Double the money, triple the time." I don't care how detailed you get on the planning, when you are done the above rule will apply.

[BUBBA]

Don't even think about signing the lease until you have these questions answered. What would you do with 4000 ft of space if the laundromat idea goes in the tank.
Start by finding out if you have proper zoning to put a laundromat in that location.

Don't assume that becuase it is a shopping center that it is a use by right.

If you need to go before a zoning board you could be looking at month or better. As far a the permits, I can't imagine them issuing them to you until you know the changes that you are going to make.

Talk to your equipment distributor to make sure you add enough utility capacity. 40 washers on a 1" service line fill very slow. How long it will take you to do the build out depends a lot on the contractors you hire and how long it will take to get your equipment.

Get an idea from the people you will have doing the work about their timetable. Talk to your landlord. There is substantial cost in setting your laundry up, and the potential for him to have a long-term tenant. If he sees that you may be able to get a longer build out period without paying rent.

[mike]

It sure sounds like this is your first store,

this is not the knd of project an experienced operator would try.

I am not saying you can't make money here,

I'm not saying you can't win the lottery,

but it isn't likely.

positive comment: please start smaller. buy an existing mat.

[hithere]

Hello There,

I am looking at one space in the shopping center to open new laundromat, but one concern is near by existing laundromat who offers very cheap prices, such as 10 min per quarter, $2 for 35LB machines etc....their price is almost half of all other laundromats around this area...
I know this is not good situation, but all other factors looks good...so, I should be a little bit cautious...
What do you think? still it's ok to open new one?
or no good? that store is around 2 miles away...
size is midium, some m/c are new but mostly OLD machines...
They are busy but I believe their actual profit is not that much...

Thank you for your advices...

[fishmanz]

It sure sounds like this is your first store,

this is not the knd of project an experienced operator would try.

I am not saying you can't make money here,

I'm not saying you can't win the lottery,

but it isn't likely.

positive comment: please start smaller. buy an existing mat.



I believe he owns 1 other store. You are looking at over 100,000 to build out that space. I wouldn't worry about the other store. You will be offering a far superior product if you can pull it off. Reviewing your demographics will give you an idea of feasability. A srtip mall is not as good as a single building. You somtimes get lost in all the activity. I recommend bright colors and a card system.

[William]

Hello There,

I am looking at one space in the shopping center to open new laundromat, but one concern is near by existing laundromat who offers very cheap prices, such as 10 min per quarter, $2 for 35LB machines etc....their price is almost half of all other laundromats around this area...
I know this is not good situation, but all other factors looks good...so, I should be a little bit cautious...
What do you think? still it's ok to open new one?
or no good? that store is around 2 miles away...
size is midium, some m/c are new but mostly OLD machines...
They are busy but I believe their actual profit is not that much...

Thank you for your advices...

Why not offer to buy that store based on what it is doing now, spruce it up and double prices to match the market?

[pete f]

I almost signed a lease once to put a store in, I called a guy who sold used equipment and told him my deal, he said check water and sewer departments and get it in writing as to the cost, for me it was nothing... until I called and asked for it in writing. It went to $1800 per washer. You must spend time at city hall, water dept, sewer dept and gas and eletric companies to find out what you have available. Then plan on spending 500k or more, and 6 months min to put the store in. Good luck! I recomend buying your own building when having to sink this much money in a business to start it. Locally a grocery store that has been around for 75 years is closing down, reason? Lost its' lease.

[hithere]

Why not offer to buy that store based on what it is doing now, spruce it up and double prices to match the market?


that store is not sale.
they don't want to sell it.

[hithere]

I almost signed a lease once to put a store in, I called a guy who sold used equipment and told him my deal, he said check water and sewer departments and get it in writing as to the cost, for me it was nothing... until I called and asked for it in writing. It went to $1800 per washer. You must spend time at city hall, water dept, sewer dept and gas and eletric companies to find out what you have available. Then plan on spending 500k or more, and 6 months min to put the store in. Good luck! I recomend buying your own building when having to sink this much money in a business to start it. Locally a grocery store that has been around for 75 years is closing down, reason? Lost its' lease.
Buying my own building cost three times ....that's why I can't buy my own building...
at least $1.5M ~ $2M required: $1M for building with property, $0.5M~$2M for remodeling and machines... for my building,
But lease space case, just $600K around....
so,....the answer is buying my own building is beyond my budget and not economical in here, if I have that amount of money($2M), I am not do laundromat, I will just my stip center and will get rent from tenants...

[hithere]

I believe he owns 1 other store. You are looking at over 100,000 to build out that space. I wouldn't worry about the other store. You will be offering a far superior product if you can pull it off. Reviewing your demographics will give you an idea of feasability. A srtip mall is not as good as a single building. You somtimes get lost in all the activity. I recommend bright colors and a card system.

One concern is store front size....
It's narrow retangular shape of space, so deep inside, but narrow front ...
I am mot sure how bad this narrow front?
is this OK? or really issue?
Thanks

[William]

That is called a "tunnel" as I pointed out earlier. It is not a great shape for a laundry. Keep looking, this is not the deal you want or need...