Restaurant Pre-Lease Due Diligence

Why due diligence happens before signature, not after

Almost every expensive restaurant mistake is signed into existence. Rent that starts before permits are issued, an "as-is" delivery hiding six-figure infrastructure gaps, a TI allowance that pays out months after you have financed the entire buildout — each is negotiable before signature and nearly immovable after. A review completed after signing can only tell you what you are now committed to.

The lease terms we pressure-test

As-is delivery with no infrastructure disclosure; allowances that are not in writing or pay out late; undefined landlord work and delivery conditions; restrictive use clauses and neighboring exclusives; unlimited personal guaranties; permitting risk carried entirely by the tenant; uncapped pass-throughs and escalations; open-ended landlord plan approvals; relocation and redevelopment clauses; and a prior-tenant history that does not add up.

The infrastructure we verify

Electrical service and gas capacity measured against the concept's real load, water and sewer sizing, grease interceptor existence and adequacy, kitchen exhaust and a viable duct route, HVAC condition and ownership, and fire-life-safety — the systems where second-generation "discounts" are won or lost.

The TI allowance math

An allowance only means something against a realistic all-in budget for that specific space. We test the offered TI and free rent against what the buildout will actually cost, so you can see the true gap before negotiating — and push for progress payments instead of reimbursement on completion.

What you receive

A written report with findings, identified risks, cost and schedule context, and a clear recommendation — concluding in a go, no-go, or go-if position with recommended next steps you can take straight into the negotiation.

Turnaround and pricing

The Initial Feasibility Review is $497 with a 2 business day turnaround — built for exactly this decision. Need the full pressure-test? The Full Feasibility Review is $1,997 in 5 business days, and within 30 days the full amount you paid credits toward the next tier up. Rush is available on any paid service for +10%. The Free Assessment is returned within 24 hours.

Field note: the trash enclosure that killed the deal

A promising site for a national brand cleared rent, demographics, and layout. The dealbreaker was outside the building: no compliant path to a code-required trash enclosure, and the landlord wouldn't cede the space. The deal died before the lease — cheaply. That is what pre-lease due diligence is for.

Frequently asked questions

Is this legal advice on my lease?

No. Saltspec reviews the space and deal economics as an independent advisor; your attorney reviews the lease language. The two work best together — our findings give your attorney concrete items to negotiate.

What do you need from me to start?

The listing or address, any floor plans or as-builts, the proposed lease or LOI if you have one, photos of the space and utilities, and a short description of your concept and budget. A listing link is enough to start.

What if the review finds a dealbreaker?

Then it did its job. An honest no-go before signature costs a few hundred dollars; the same discovery after signing can cost the project. Many findings become negotiating leverage rather than dealbreakers.

Keep reading

Guides: Lease Red Flags Before Signing and TI Allowance Explained for Restaurants. Tools: Questions to Ask Before Leasing and TI Allowance Calculator.