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Compensation for neighbor giving up space8/20
We are in desperate need of expansion space. Things have grown very fast in the past few months and I just hired two new cabinetmakers. We have 3600sqft in an industrial park and there is an other 1800 soft bay that shares a common concrete block wall with me. The new tenant has two food trucks and uses the space for overbite parking and maintenance. He has just moved in two months ago and has not done any work of any kind to the interior. He had paid his local permit and business license which is about 800.00 for the year.
"Overbite parking." Typo of the year!
Considering that we're talking about food trucks. Harold may be the most unintentionally funny guy on this board, for which I love him. He wins the internet today.
In all seriousness, ask him how it's going. He might be doing great or he may be ready to fold and ready to beg you to take the space off his hands, never mind any fees he's paid. Just so there will be one less vendor who will sue him.
Food truck businesses fail at far, far greater rates than cabinet shops. Worse than regular restaurant rates of failure, which are horrendous.
Or, he might be willing to move to another similar spot for little or nothing. It's not like he spent anything on the space or that his permit and license aren't portable.
The worst he can do is say "no," in which case you up your offer above zero. Start at zero and take it to whatever you can justify to avoid a move. Good luck.
That's what happens when you do your posting at 11pm on an ipad 😀. he may have a website,business cards, stationary, corporation documents or whatever already made up or perhaps it doesn't matter to him,but I would not think of just starting from zero compensation. Just trying to be fair.
Yup talk to him.
How is it that a successful (we assume) businessman needs to consult a forum of strangers for such a question? Get to the man and talk to him, maybe get lunch (your treat). Any other suggestion is a waste of your time. The bottom line is you need to make an offer he can't refuse, he owes you nothing, and it just business. That may sound harsh but that's my 2cents, you asked. Good luck Bro.
I wonder if Harold's willingness to consider other points of view is part of his success?
Stefan, no one on this site is a stranger to me. I have been an active member since its inception. I have been in steady communication with a fellow cabinetmaker in Chatanooga that I have never met as he enters the realm of modern euro cabinetry with materials that he has to date not used . Consider him a friend and if I needed his guidance I am sure he would provide it. I don't often have the time to get to shows and Florida is full of people from elsewhere and my experience has been enriched by everyone on this site. Of course this neighbor had no advantage to moving and I would not only compensate him but give him a financial insentive, but wanted to hear from those that may be more experienced then me. Bottom line is its a hard nosed business decision,, of course.thanks, Harold..
Hello, I would suggest that you talk with the landlord first , you already have twice the space and a longer history as a tenant.
Harold, glad to hear things are on the way up... is this a bigger space than the one you had in Canada?
Anyway, one way to zero in on what to make as an offer is to reverse it...
What would he have to offer you to do the same? And then adjust from there, based on how much he has to move, and what it would cost to do it...
Depending on what he has in there, it may be as simple as having your guys take a day to help him move and offering to pay him the equivalent of a months rent for a days inconvenience and/or the cost to update his printables (i.e. - cards, stationary, etc.) and/or reimbursement for the business/permit fee... or you could offer to build him some custom unit for just the cost of materials...
Or if it doesn't seem like he's using the space or making changes, he might be happy just to find a mutually beneficial situation that allows him to get out of his lease...
In fact, based on what you posted, that would be a good conversation starter... "I noticed you're not here much and haven't made any changes on the interior... it got me thinking"...
Set everything up in advance (does he need new business/permit app for new bay, is it OK with the owner for the transfer, what you plan to offer, etc.) so it lays out the pro's and cons (which would be minute based on what you posted), and tell him you been thinking a lot about it and that you might have a mutually beneficial arrangement for him...
Make it easy for him to say yes... just some thoughts...
Best of luck... 8^)