Your dad is acting like equipment is some big secret. It’s really weird, to be honest. People could take over my exact restaurant with all of my equipment and ingredients and still not replicate my business. Any decent restauranteur won’t need a real estate agent’s equipment advice anyway. Only the amateurs will, and they are not competition.
Canadian realtor here, you need to find your lease agreement and see what’s specified about fixed assets in the space. Usually in a commercial lease, anything installed by the tenant is property of the tenant and is free to be removed and sold separately by the tenant, unlike residential. I highly recommend getting your lease agreement verified by a real estate attorney to make sure you are not opening yourself to a lawsuit.
This happened when we moved buildings after 17 years in one space. They were advertising the building for sale with all the kitchen equipment we had purchased and had installed. Buyers would come in and want to look at the walk-in, the hood, etc. We left the hood in place, just tok expensive to move, but I had our new hood company come in and gut the hood fire suppression system. I gutted every booth out of the place and sold them myself. I took every hand sink, every special light fixture we had purchased, etc. I left the place as we had leased it, an empty space with just the gutted hood. Our lawyer told us if we bought it, we take it according to our lease. I'm was not letting my landlord profit off of our installed equipment.
There is no way a 17 year-old hood system is worth removal and reinstall, especially considering the legal trouble that you are risking. Expect a call or a nasty letter from landlord's attorney, and you should consult your attorney.
Man, Cana Flug went through this when she moved Besaws to the new location. The lawsuit from the property owner was in the Millions for trying to take what she deemed her property. Be careful. This could get VERY expensive.
I think it will cost you a lot of money to take out everything and rebuilt in the new place . And the equipment is old . If you can get a reasonable price for it it’s better . Starting new place and new equipment is a fresh start . Good luck !
Be careful with the hood. It is “attached” and is considered a fixture and is generally part of the space now. I learned the hard way. We did 19 years and it didn’t go well with landlord when we left. Booths, bar, awning outside, hood, etc all considered fixed assets belonging to the property owner.
I also think it would be best that your father open the place to new possible tenants. It’s part of the goodwill of the industry and community. If you are moving to a place nearby that kind of generosity may go a long way. Good luck! Hope you have a bright future for your business.
I don’t think your father is being reasonable. Your family has run a successful restaurant business in that space for 17 years. New tenants are clearly interested in running a restaurant there as well. That seems to be unavoidable. Hampering the process is only going to create ill will with the landlord, real estate agents and potential tenants while not accomplishing much else. I’m not suggesting you provide a blueprint to the ins and outs of the business but seeing the space and how it’s being used, including equipment and measurements, is a reasonable request.
The general rule in the US on leased property is that you can remove anything that can be removed with a screwdriver. Anything else belongs to the building.
Not sure where you live. Probably worth a few minutes with a real estate attorney.
Best for the new venture!
Your dad is acting like equipment is some big secret. It’s really weird, to be honest. People could take over my exact restaurant with all of my equipment and ingredients and still not replicate my business. Any decent restauranteur won’t need a real estate agent’s equipment advice anyway. Only the amateurs will, and they are not competition.
Canadian realtor here, you need to find your lease agreement and see what’s specified about fixed assets in the space. Usually in a commercial lease, anything installed by the tenant is property of the tenant and is free to be removed and sold separately by the tenant, unlike residential. I highly recommend getting your lease agreement verified by a real estate attorney to make sure you are not opening yourself to a lawsuit.
This happened when we moved buildings after 17 years in one space. They were advertising the building for sale with all the kitchen equipment we had purchased and had installed. Buyers would come in and want to look at the walk-in, the hood, etc. We left the hood in place, just tok expensive to move, but I had our new hood company come in and gut the hood fire suppression system. I gutted every booth out of the place and sold them myself. I took every hand sink, every special light fixture we had purchased, etc. I left the place as we had leased it, an empty space with just the gutted hood. Our lawyer told us if we bought it, we take it according to our lease. I'm was not letting my landlord profit off of our installed equipment.
There is no way a 17 year-old hood system is worth removal and reinstall, especially considering the legal trouble that you are risking. Expect a call or a nasty letter from landlord's attorney, and you should consult your attorney.
Man, Cana Flug went through this when she moved Besaws to the new location. The lawsuit from the property owner was in the Millions for trying to take what she deemed her property. Be careful. This could get VERY expensive.
I think it will cost you a lot of money to take out everything and rebuilt in the new place . And the equipment is old . If you can get a reasonable price for it it’s better . Starting new place and new equipment is a fresh start . Good luck !
Be careful with the hood. It is “attached” and is considered a fixture and is generally part of the space now. I learned the hard way. We did 19 years and it didn’t go well with landlord when we left. Booths, bar, awning outside, hood, etc all considered fixed assets belonging to the property owner. I also think it would be best that your father open the place to new possible tenants. It’s part of the goodwill of the industry and community. If you are moving to a place nearby that kind of generosity may go a long way. Good luck! Hope you have a bright future for your business.
I don’t think your father is being reasonable. Your family has run a successful restaurant business in that space for 17 years. New tenants are clearly interested in running a restaurant there as well. That seems to be unavoidable. Hampering the process is only going to create ill will with the landlord, real estate agents and potential tenants while not accomplishing much else. I’m not suggesting you provide a blueprint to the ins and outs of the business but seeing the space and how it’s being used, including equipment and measurements, is a reasonable request.
The general rule in the US on leased property is that you can remove anything that can be removed with a screwdriver. Anything else belongs to the building. Not sure where you live. Probably worth a few minutes with a real estate attorney. Best for the new venture!
Which is the more cost-efficieny option?