Good morning group,
This is my first post here in a long time, but I have a questions around leasing space and buildout costs.
I've started looking for space for my new non-profit corporation. We're looking for a pretty basic secure warehouse space, 4 walls, basic electrical and water access. We have no special needs. One space that we were particularly interested in was an unfinished warehouse space of about 1500 square feet in a storage facility. It was a great location, attached apartment, and nice secured/fenced property. After talking with the landlord, everything seemed pretty good. However, when he contacted me back with details, he was asking $12,000 for buildout costs to bring the space up to code (nothing more than drywalling, insulating, adding a drop tile ceiling and installing 120 V electrical circuits throughout.) But hey, because he was a nice guy, he was willing to include that cost in increased rent for the FIVE YEAR lease he wanted us to sign. (What kind of startup signs a 5 year lease?!?!)
I was under the impression that in most cases, landlords take responsibility for buildout costs to bring a property up to code, and the tenant generally is responsible for any special needs of the business. Is this the case or are my expectations unreasonable? It seems to me that these folks are trying to get us to pay to develop their property. Just trying to get some feedback as to whether I'm nuts or these folks are before I respond to them.