How to Choose the Right Restaurant Space for Lease in Las Vegas

Opening a restaurant in Las Vegas can be extremely fulfilling, but the restaurant space for lease in Las Vegas you choose is the foundation of your ongoing success. With so much competition, constantly shifting demographic factors, and strict property requirements, the selection process involves much more than aesthetics. You have to consider infrastructure, zoning, surrounding demographics, and lease terms to find a space that is conducive to your concept and profitable venture.

Understanding Your Concept Before You Search

Define Your Restaurant Style

Before exploring restaurant space for lease in Las Vegas, it is extremely important to have established your concept. Ideally, you would have already established if you are opening a fast-casual restaurant, full-service restaurant, or cafe (etc.). Each of these formats requires certain kitchen systems, seating areas, and layouts to operate efficiently. Depending on your concept, you will identify the type of restaurant space you are looking for, sizes you are looking for, and the types of mechanical systems required for daily operations.

Know Your Customer Base

Las Vegas has tourists, families, office workers, and nightlife customers. Understanding the customer base, you are focused on will allow you to narrow your restaurant space for lease in Las Vegas search based on your concept. For example, a restaurant that caters to families could be more successful in a suburban area like Summerlin or Henderson, while a high-energy bar or fast-casual restaurant could be better suited for the strip or downtown.

Choosing the Right Location in Las Vegas

Visibility and Daily Traffic

Premises with high visibility tend to generate a steady flow of customers. Properties adjacent to major roadways, lifestyle centers, and active pedestrian thoroughfares will have baseline customer volume. When you are considering a restaurant space to lease in Las Vegas, think about how easy it will be for customers to see your restaurant, and more importantly, to enter your building, during peak business hours.

Neighborhood Vibe and Market Fit

No two neighborhoods in Las Vegas are the same. The Strip will be appropriate for high-volume, multi-user type concepts; Downtown may be more appropriate for trendier, nightlife focused restaurants; and; Chinatown can be an area with a vibrant foodie culture. Suburban neighborhoods will have more dependable, loyal customers. This alignment between your concept and the neighborhood will allow for the space to engage your revenue potential over the long-term.

Evaluating Essential Restaurant Infrastructure

Kitchen Systems and Mechanical Support

The infrastructure could be the most expensive aspect of opening your restaurant. One of the core components of a restaurant is kitchen systems infrastructure. Once you are reviewing a restaurant space for lease in Las Vegas, you will want to be assessing whether there are hood systems, grease traps, fire suppression systems, and adequate electrical service. If you can secure a second-generation restaurant space with basic systems in place, you can save tens of thousands of dollars in construction costs.

Plumbing, Ventilation, and HVAC

The presence of proper ventilation, appropriate plumbing stacks, and functional heating/cooling systems are essential for comfort during operation and adhering to code requirements. If a space has poor ventilation or old HVAC systems, you will be confronted by high costs of repair and complaints from patrons sooner than later. These systems must be checked as soon as possible to avoid unforeseen costs after signing a lease.

Understanding Local Regulations and Permits

Health and Building Requirements

Las Vegas has stringent health district compliance regulations. Any restaurant space for lease in Las Vegas must be assessed in regards to its ability to comply with local permitting and inspection requirements. If you submit your plans early and adhere to health code regulations in your layout, you will increase the feasibility of operation.

Liquor and Signage Regulations

If you lease a space planning to serve alcohol, ensure that the zoning for the property permits alcohol service. Signage will also affect a restaurateur's ability to display their brand, as Las Vegas has regulations on many commercial districts concerning signage. Also check that the space does allow for both signage and liquor license needs. This will save time and prevent any discomfort with the lack of signage when moving forward with redesigns/moves.

Analyzing the Financial Structure of the Lease

Rent, CAM Fees, and TI Allowances

Understanding the financial aspects of a restaurant space for lease in Las Vegas is equally important as evaluating the condition of the space. Focus on base rents, CAM costs, and the cash value of a potential tenant improvement (TI) package. These value items outline your projected monthly overhead expenses and your beginning budget for construction.

Negotiation Essentials

Once you gain an understanding of the financial impacts, making a good negotiation will help you improve your situation. Ask questions about CAM costs and be deliberate about a TI package that will be beneficial to you. Also determine the length of time rent may have abatements applied, during the construction process to budget for operating cash flow. A well-negotiated lease will understand liquidity to spend on marketing, staffing, and equipment.

Conducting Thorough Due Diligence

Inspect the Space Carefully

Confirm the space's layout, adequate kitchen value, utility connections, and past restaurant uses prior to agreeing to a lease. A thorough inspection and evaluation prior to moving forward will allow you to reasonably determine any issues that may impede operational efficiency, or potentially expensive changes and upgrades that may be needed.

Review the Property’s History

Secure as much data as you can get your hands on including historic utility bills, maintenance checklists, inspections, and as-built drawings. Understanding the as-builts and history on the space's performance can provide future risk estimates as well as help you calculate a reasonable ready timeline for opening.

Matching the Space to Your Revenue Potential

Aligning Space Size with Operations

Your restaurant shouldn't feel too tight, nor should it be excessively large. Ensure that the restaurant space for lease in Las Vegas properly reflects what you're predicting for your seating capability, the work flow in your kitchen, or pace of service expected. Having a space that fits your rhythm of operations will afford you increased efficiency, and decrease labor costs while also enhancing the customer experience.

Considering Long-Term Growth

Take the time to think beyond opening day. If you are successful with the concept, does the location allow you to grow, develop foot traffic, or add services? Going with a space that will be flexible will give your brand sustainable opportunity in a changing market that is Las Vegas.

Final Thoughts

Getting the proper restaurant space for lease in Las Vegas can be a balancing act when weighing your concept clarity, market research, technical determination, and negotiations. By choosing a restaurant space for lease that meets the needs of your infrastructure, audience and financial model has all of your restaurant setting itself up for longevity. Las Vegas is filled with opportunity for both new and existing restaurant owners, very few possess the foresight in not only selecting the right space but lease.