PDA

View Full Version : Building Issues - again



Stephen Beckham
11-30-2009, 10:32 AM
Most of you may remember when I was having issues with my landlord wanting to raise my rent by 80% overnight.

Since then, I've found a building to buy and he wouldn't let me out of the lease even though "I'm losing money only charging you $.85 a square foot" in his words. I offered them back to him as an opportunity to make what he feels he should be getting out of the store if I was released - no sale. I'm stuck till August 2010... Right???? WRONG!!!

He came in Friday and informed me that he wants me to consider moving out temporarily while he tears down the building and rebuilds a new one. Kind of hinted in a catch that would cost me money if I don't agree to come back and pay a retainer fee while I'm out. I told him I'm either in here till July "but I'll loose lots of money by not having the new building with four other tennets if I wait that long" in his words again OR he could let me out clear and free soon as possible. I also told him there wouldn't be a loss of my deposit since this was brought on by him, not by me. In most cases, he should be offering me something to get out early versus just trying to strong arm me out.

I've got an alternate building I can go into, but he fears not getting me back. I told him that I've got to sign a year long lease to move anywhere or just shut down for four months. Shutting down is not an option and if the timing and price is right, I'll either break and come back or wait that year out and re-consider then.

Boy - seems like it's a bear to be a small business owner these days when the banks don't want to give money and landlords only want to take money....:eek:

Anyway - take care creekers - I'll be back to update you guys where I'm at as soon as I can figure it out. Back to making ornaments...

Steve

Randy Walker
12-04-2009, 12:46 AM
I don't know Stephen, sounds like he is trying to scam you. I think I might go ahead with the new building, pile a bunch of junk in the old one, and call it a warehouse (until the end of the lease). If he complains make the offer to break the lease again or he can tell it to your lawier. You own the space until the end of the lease. imho

Randy Walkerhttp://www.sawmillcreek.org/images/icons/icon10.gif

Stephen Beckham
12-04-2009, 10:31 AM
I do worry Randy, but his SIL who is the local manager seems to be on my side. I love the prospect of being in a brand new building. Honestly, it will be the first new building built in this town in probably 10 years.

The town is in Guiness Book for being the smallest Incorporated City in America that is completely surrounded by military base (government property). There is no room to expand, only three lots for sale - only building that occurs is repairs to old properties.

Mark Ross
12-04-2009, 3:58 PM
If it is completely surrounded by a military base, how do the civilians get in and out of town?

Dan Hintz
12-05-2009, 3:46 PM
If he won't let you out of the lease but you want to go to another building, I would go ahead and sign a lease in another building (assuming you have the money). Since he's being such a jerk about the whole thing, make sure you leave stuff in his location so he can't renovate. I assume he'll continue to complain about wanting to renovate, you can keep reminding him all he has to do is let you out of the lease and you'll move our stuff.

He's trying to wear you down to get what he wants, so do the same to him.

Joe Pelonio
12-05-2009, 5:29 PM
Something similar happened to a business where my wife works part time in a good sized local city. The whole "strip mall" was to be torn for a new high rise. When the owner got anxious to get started, he made it more and more difficult for the last few tenants (who still had time on their leases) to stay, even "accidentally" shutting off the power at times. Eventually they all moved out, but now they are looking for "month-to-month" tenants because the developer has no more money for the new project.

I'd definitely have a lease signed on the new building before commitment to come back, I have never seen rent stay the same on a new building. In fact, it's likely to be way more than you pay now.

Stephen Beckham
12-06-2009, 11:59 AM
Mark - http://en.wikipedia.org/wiki/Muldraugh,_Kentucky - gives a good explaination, but not enough. Bottom line is Hwy 31W splits the main post from some of the training areas. So getting off of 31W past Muldraugh, you have to enter post, or continue South till you get to the next town.

Dan - thought about that - and already explained that I'd expect money back to buy out of the lease once I move. Bottom line - I don't have the extra $3500, but I'm not going to take it laying down either. We'll come to an agreement one way or the other.

Joe - he's already stated that I'll have to pay more rent to move back in. I asked him what was my incentive? Move at my cost before the lease ends; move back at my cost before the lease would have ended; loose money on the part-time lease and setting up the temp location; pay more money when I move back... His answer - being in a good location with a brand new building versus the 13 y/o building I'm in now... Not sure if he heard himself or not...

Joe Pelonio
12-06-2009, 3:47 PM
A 13 year old building is not old. As for location, it depends on what you are doing I guess. If you are selling items that are good for the "impulse" buyer
then you need traffic. As a sign shop doing more production work than personal items, even with the laser, I found that paying rent for a strip mall location next to one of the busiest restaurants around was a waste of money. Rarely did I get someone stopping in to order that was passing buy.

I moved after 8 years and got twice the space for less money in a light industrial business park where I had most of the other tenants as built in good customers and was 50 feet from one of my suppliers.

Stephen Beckham
12-07-2009, 9:07 AM
A 13 year old building is not old.

Totally concur - the issue is this 800 sq/ft building is sitting on 21000 sq/ft commercial property. He has enough room here by code to build up to 10,000 sq ft building - yielding somewhere between $5000-$10,000 in montly lease versus my $700.

The building is sitting slap in the middle of the property so he can't even build around it without lots of code problems. It's simply business and if I could have bought it from him, I would have tried to do the same. I've got no hard feelings about what he wants to do, it's just the way he expects me to pay a part of it with no return on investment.

Mark Ross
12-07-2009, 9:42 AM
Steve,

I took a look via google maps...that is BIZARRE to say the least. I bet if the government had their way, they wouldn't do that one again. I had never seen a military base set up that way. I have seen them back up to the ocean, but never surround a town like that.

Conrad Fiore
12-07-2009, 9:57 AM
Isn't your landlord "breaking" the lease by tearing down the building? How can you be bound by a lease for building space that won't exist if he tears down the building?

Dan Hintz
12-07-2009, 10:24 AM
Mark,

If local governments can claim eminent domain and take back your property, I see no reason why the federal gov wouldn't do it if they really wanted the land. I suspect it's simply not as much of a bother to worry about.

Stephen Beckham
12-07-2009, 12:21 PM
Mark,

It's actually the opposite. Fort Knox offered several hundred acres to the town at no cost other than maintain and annex the incorporation of it. The town turned it down (years ago of course) today both have mixed feelings, Knox won't give it up anymore and the town folk are still rather mad the offer was turned down because they want to grow now with BRAC happening.
Lots of hills, lots of wetland, good fishing ponds, great hunting, great firewood source and lots of really good military training area for driving tracked vehicles, bad for city/housing areas.

Joe Pelonio
12-07-2009, 10:23 PM
Totally concur - the issue is this 800 sq/ft building is sitting on 21000 sq/ft commercial property. He has enough room here by code to build up to 10,000 sq ft building - yielding somewhere between $5000-$10,000 in montly lease versus my $700.

The building is sitting slap in the middle of the property so he can't even build around it without lots of code problems. It's simply business and if I could have bought it from him, I would have tried to do the same. I've got no hard feelings about what he wants to do, it's just the way he expects me to pay a part of it with no return on investment.
That's interesting, because here I have seen new buildings go up completely up against old ones when the last owner refused to sell. In Seattle there's one now, two stories and very old with new high-rises up against it on both sides. Here's one where an elderly woman refused to sell her home to a local software giant so they just built as close as they could.