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Restaurant Real Estate
Key ingredients for restaurant success
Finding the right location for your restaurant business requires careful consideration and market research. For over three decades, we have been advising restaurants and hospitality clients, from start-ups to well-established brands. When it comes to restaurant site selection, several factors need to be considered including:
1. Location: The location of a restaurant plays a vital role in its success. It should be easily accessible, have good visibility, and be in an area with sufficient foot traffic or target customers. Factors like proximity to residential areas, office complexes, tourist attractions, or transportation hubs can significantly impact the potential customer base.
2. Size and layout: The size and layout of the restaurant space should align with your business plan, concept, and target market. Consider the seating capacity, kitchen area, storage space, restrooms, and any other specific requirements.
3. Zoning and permits: Local zoning regulations should be reviewed to ensure the property is zoned for restaurant use. Necessary permits and licenses may be required including health department permits, liquor licenses and fire safety inspections.
4. Infrastructure and utilities: Existing infrastructure and utilities should be evaluated to ensure that it meets the proper requirements, including electrical, plumbing, ventilation, and water supply. Upgrading or modifying these systems can be costly.
5. Parking and accessibility: Adequate parking facilities or proximity to public transportation for customers and staff should be considered, as it will contribute to the convenience and attractiveness of your restaurant.
6. Competition and market analysis: It is important to research and understand the local market and competition in the area to determine if there is sufficient demand for your restaurant concept. Be sure to understand your unique selling points and market positioning.
We can help you navigate the process. Our knowledgeable restaurant experts work with you to secure the best possible location, negotiate lease or purchase agreements, and provide valuable insights based on our years of expertise and deep market knowledge of the restaurant industry. Browse through our restaurant spaces for lease or sale.
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FAQs
What do I need to know before leasing a restaurant space?
Operators should evaluate zoning, venting, grease trap requirements, utilities (gas, water, electric), parking, foot traffic, and whether the space can support kitchen infrastructure. Understanding buildout costs and permitting timelines is also essential.
How much does it cost to build out a restaurant?
Buildout costs vary widely based on the condition of the space. Raw or first-generation retail spaces may require significant investment for venting, plumbing, HVAC, and kitchen installation. Former, second-generation spaces reduce both cost and construction time.
What should I negotiate in a restaurant lease?
Key deal points include tenant improvement (TI) allowances, rent abatement during buildout, personal guarantee terms, venting, grease trap, signage, exclusive use clauses, and CAM charges.
How long does it take to open a restaurant after signing a lease?
Depending on permitting, design, venting, and construction, timelines typically range from 3–9 months. Second-generation spaces significantly shorten this timeframe.
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