Selling the remaining time on my lease

[adamray10]

So I own a small business and have been operating on a 10 year lease for 3 1/2 years. The space next to me is small and the landlord has had a hard time leasing it. I received a call today telling me that there was a "corporate" interest in my location, and they asked me if I was interested in moving or simply exiting my lease. There are 6 1/2 years left on the lease.

My question is...If I were willing to exit my lease for a new business that is going to be leasing my space and the empty space next to me, how should I go about determining the value of my lease? I want to contact the landlord and say "Yes I will leave for $X"

Any help is really appreciated. Thank you in advance.

[Harold Mansfield]

Moving to http://www.small-business-forum.net/managing-your-business/

[Fulcrum]

Tell us a little bit more about your business. Without knowing your business type we can't give you any kind of meaningful advice.

[adamray10]

I own a small sub shop. Our space is around 1600 square feet. We generate about $300,000 in revenue each year. I am willing to provide more information if needed, just not sure what you might need to assist. Thank you.

[Fulcrum]

So ... many ... questions:
1) Where would you move to?
2) How critical is your location to your sales?
3) Would this "corporate" interest be another sandwich shop?
4) Would it make more sense for you to take over the empty space (at a reduced rate) for a larger seating/kitchen area?

This should give you a few things to think about before trying to place a value on the remaining lease term. It would be a lot easier to value had you been the landlord trying to sell the lease payments.

[tallen]

To add to Brad's good questions:

* What would it cost you to move to a new location, and to re-establish your business at this new location?
* Will your current customers move with you, or will you have to develop new customers at the new location?

[Fulcrum]

To add to Brad's good questions:

* What would it cost you to move to a new location, and to re-establish your business at this new location?
* Will your current customers move with you, or will you have to develop new customers at the new location?

D'oh. Can't believe I forgot to ask those.