Restaurant Leasing

Free Seminar:  Why Lawyers Kill Commercial Real Estate Deals and How to Spot a Bad Deal in Advance
When:  Wednesday, March 15, 2017 from 5:30pm – 7:00pm
Where:  NYC Small Business Solutions, 110 William Street, New York, NY (7th Floor Boardroom)
Seminar Description: Are you tired of spending countless hours showing a property and negotiating a deal, only to have lawyers get involved and kill the transaction?  How can this be avoided?  This seminar is designed to assist commercial real estate brokers identify problematic deal terms before their time is wasted.  The seminar will focus on:

• Is your ‘non-binding’ letter of intent actually binding?
• How to properly structure a letter of intent for various transactions (e.g. sale, lease, investment)
• Identifying hidden lease expenses (i.e.

When:   

Downtown Location:  September 13, 2016 from 5:30 p.m. to 8:30 p.m.
Uptown Location:  September 28, 2016 from 5:30 p.m. to 7:30 p.m.

Where:  

Downtown Location: 79 John St., 2nd Fl, New York, NY 10038
Uptown Location:  361 West 125th St., 2nd Fl, New York, NY 10027

Seminar Description:  An insider look at tips, tricks, and best practices to start your first restaurant in NYC, presented by Restaurant Attorney James D. DiPasquale.  To start and run a successful restaurant you must understand many different legal considerations which make operating in New York City, particularly unique. Whether you are a new or existing restaurant owner, this special follow-up to the Restaurant Management Boot Camp class will help you gain a deeper understanding of all of the basic requirements to get your business up and running.

-Forming a Corporation or Limited Liability Company (pros/cons of each)

-Partnership Considerations (The legalities of dealing with your business partners and investors)

-Finding  your restaurant space (Buying an existing restaurant vs. straight lease)

-Negotiating your Restaurant’s lease

-Applying for a Liquor License

-General discussion on permits needed (food service/cabaret/sidewalk café, etc.)

To Register:

For the Downtown seminar:  click HERE or paste the following link into your web browser: https://www.eventbrite.com/e/restaurant-management-bootcamp-20-lower-manhattan-91316-registration-27080444338

For the Uptown seminar, click HERE or paste the following link into your web browser: https://www.eventbrite.com/e/restaurant-management-bootcamp-20-upper-manhattan-92816-registration-26354368626?aff=ebapi

This Thursday August 28, 2014 from 5:30 to 7:30 p.m. I’ll be giving a seminar in the Restaurant Management Bootcamp 2.0 Series that is hosted by NYC Small Business Solutions.  The Course Description is copied below:

Restaurant Management Bootcamp 2.0: Legal Considerations when Opening a Bar or Restaurant
An insider look at tips, tricks, and best practices to start your first restaurant in NYC, presented by Restaurant Attorney James D. DiPasquale.  To start and run a successful restaurant you must understand many different legal considerations which make operating in New York City, particularly unique.  Whether you are a new or existing restaurant owner, this special follow-up to the Restaurant Management Bootcamp class will help you gain a deeper understanding of all of the basic requirements to get your business up and running.

New York City retail rents have increased astronomically over the last decade or so.  Many restaurateurs entered into 10 or 15 year leases when NYC was a different place with less trendy neighborhoods and much lower rents.  Now, market rent has doubled or tripled and those restaurant owners with expiring leases are in a pickle.

The struggle is common one between lessors and landlords.  Restaurateurs that signed a lease long ago have been benefiting from low rent for many years.  Landlords have been losing out on market rent since rents started to skyrocket and are often waiting for the current lease to expire so that they can raise the rent.  With rents in some neighborhoods reaching $5,000 per square foot, these increases are forcing many restaurants to move to less expensive neighborhoods or worse, close their doors.  Even well known restaurants are falling victim.

Establishments as famous as Bobby Flay’s Mesa Grill have been forced to close.  While others, such as the Union Square Café and Four Seasons might be in the same situation very soon.    

If you have opened a new restaurant or bar in the last two years, you have likely noticed that New York City landlords are becoming steadfast in their demand that all new leases contain demolition clauses.  Old office and residential buildings are potential redevelopment opportunities which landlords are no longer willing to overlook.  Landlords, of course, want to maintain a steady income from the property while also maintaining their flexibility to terminate leases and/or relocate tenants if the need arises.  If a landlord has redevelopment in mind, then a right to terminate existing leases so that demolition or substantial renovation can occur may be necessary. However, from a tenant's viewpoint, such a right, without limitation, can be less than satisfactory. Sometimes arriving at an appropriate middle ground can be impossible. Just ask Wylie Dufresne whose restaurant wd~50, is closing because the building is being torn down for renovation.    Similarly, according to Eater NY, P.J. Clarke’s is in the middle of a $40 million dollar lawsuit with its landlord who is allegedly attempting to push them out so as to make room for Pastis.  In short, tenants cannot overlook a landlord’s desire to evict them should an opportunity arise.  For that reason, when negotiating a new lease, Tenants must consider things such as: