A restaurateur identified a potential East Village location at 159 Second Avenue with 1,200 square feet on the ground level and 900 square feet in the basement. The initial offer was $186,000 per year ($15,500 per month) with 3 percent annual escalations and a 12-year-8-month term, plus eight months of free rent to accommodate build-out. The offer requested white-box delivery with a gas line, 3-phase 400-amp electrical service, working outlets, a new HVAC system, and a certificate of occupancy for commercial restaurant use. The landlord countered at $234,000 per year and insisted on delivering the space "as is," offering a half-rent concession for eight months.
For 1,200 square feet on the ground level with a Wu-Tang Killa Beez-yellow HVAC barrel running through it, plus 900 square feet in the basement, I offered $186,000 per annum, or $15,500 per month, with 3 percent escalations per year and an initial lease term of 12 years and 8 months. Because the build-out and renovation was going to take time, I also requested eight months of free rent.
Within 12 hours, the landlord countered with $234,000 per year - the original ask on the listing -with a concession of half the rent for eight months ($9,750), and the space "as is," meaning it was completely on me if something like the HVAC wasn't in working order. They basically told us to fuck off. But I've been shopping around, and I knew I wasn't lowballing them.
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