Incorrect square footage and sound proofing. Caution!

[003]

Hi Rein Members!

I am in the final steps of getting a lease on a commercial space in Vancouver on Broadway and West 2nd Avenue. It is my first time leasing a space. It will be used as a dance studio (jazz, tap, ballet, and etc.) and entertainment for the web production studio.

I dropped the realtor that was showing me the space because his only interest was in getting me to sign and for him to move on to his next deal. The landlords realtor will not pay a different realtor to do the deal. I am now dealing on this space on my own and with my lawyer.

1st question:

The floor plan says the space is 1756 sq/ft. I measured it and it was 1564 sq/ft. On a two year lease that is about $7300 that I would be paying for space that does not exist. There is no common area that could account for this error. The only thing I can think of is they are charging us for the 2 parking spots. That would possibly make up the difference. Shady? I just brought it up yesterday and am waiting to hear back from the landlords realtor.

This difference changes the rent from $9 to $11.50 sq/ft. Anywhere you look for space in the area rents start at a minumum of $14 sq/ft. Even with this error it is still lower than the others. However, I haven`t put in any offers on other locations, so I don`t know if anyone will come down. The space is great for what I want to do. I require that there aren`t any supporting beams in the center of the room. It seems like a great deal at both prices.

What would you do?

2nd question:

The wall separating us from the tenant next to us is thin. Wood and sheet rock with no insulation. I did a sound test with a stereo and could hear everything in his space. It was the same with the tenant above us. It is a wood floor. You can hear foot steps.

We need to sound proof it or minimize the sound. I looked it up on ehow and talked to a recording studio. Things can be done. At what cost and how much reduction?

I would have to foot the bill for this. I wonder if I should be looking for a new space? Not a lot available, maybe more next year. I don`t know.

A note:

We would like to teach in this space. City law requires 18 parking spots for a "school". If it were retail it would only be 2 required. You can only fit 10 to 15 people in the space at once. The same as retail. Parking costs alot of money, if you can find it. We are working with the city to change this. Very difficult.

Advise:

Seek out an Agent you can trust! and be careful.

Does anyone have any suggestions?

Thank you.

 

[003]

An article I just read...

Why it is Important to Understand Exactly What CAM Fees Are Listed in Your Commercial Lease


In 1989, I rented industrial space to open a craft consignment and hobby store. The park appeared to be in good condition and the landlord was a friend of the family and cut the rent by a third as a courtesy. This was the first industrial lease I had signed and did not fully appreciate the power of CAM fees. In other words, I signed a binding legal document without a clue as to what I was signing.

I did not know what a Triple Net Lease was, only that I should avoid signing one. I asked the landlord what type of lease I was about to sign and never once did I hear the term "Triple Net." Instead, I was told my lease had CAM and administrative fees. What I did not realize at the time was that the administrative fees included taxes, insurance and a whole host of other very expensive costs.

Only one month into the lease, the park owner began extensive park renovations including redesigning the front units to appear more like retail space. Signs were changed, the building was repainted, and some structural changes were made to the front of the industrial park. The bill was divided among all tenants, and although I had a very small unit, I was stuck with a $5,000 bill - my portion of the park upgrades even though my unit was on the side and in no way benefitted directly from any of the improvements. Other tenants were hit with nearly $20,000 in renovation fees. Had I read the lease more carefully, I would have known enough to at least ask if any upgrades were scheduled in the near future and to see that what I through was a simple lease, was actually a Triple Net Lease in disguise.

 

[brentdavies]

dance studios in my experiance are difficult tenants for a multi use building, as they work evenings and weekends. Noise is an issue. Cash flow and the ability to pay rent is another.

The square footage of commerical is not measured from the windows, or inside the walls. The outside building face is included in the measurement. Go to BOMA website for building measurements. Common areas and hallways can be included. Stairwells that service the floor can sometimes be included.

 

[JaysonSidhu]

First things first. You need professional representation. The landlords realtor cannot prevent you from working with your own buyer`s realtor. Leasing a commercial space has many variables and can be very complex. I highly suggest you work with an agent. I persobally know of a few very good commercial realtors in the Vancouver area.

Please feel free to contact me directly.