There are likely to be several components to it. One is the property. Does the zoning allow such use or might a variance be required? Can the property support parking as required by code for the envisioned capacity?
Another aspect is the building itself. What changes might be required to make the space work and be code and
ADA compliant for the new use? As Gerard noted, depending on the past use and what you intend this could be a minor effort or a very significant one. It could potentially include supplementing or replacing
HVAC, plumbing and/or electrical systems, possibly adding sprinklers, addressing exiting and accessibility and so on. And what modification might the lease allow or exclude?
Adding to that may be financing. You may be able to lease for $700 a month but what financial requirements would there be to get that lease, how long a lease is it, what are the terms to break the lease and so on? How will you finance any renovation or adaptation construction costs? What utility costs are included or excluded from the monthly lease cost? What about insurance, has anyone looked at the costs for that?
And through all of this keep in mind that $10,000 per year is $833.33 per month, so if the
base lease cost is $700 per month then you could incur only $133.33 of additional expenses per month without spending more per year. My guess is that $133.33 per month may not
cover the insurance and utilities costs if you have to
cover those, much less the interest and payments on a construction loan.
Do you have any contacts for people in real estate, business financing, architecture, General Contrccting,
etc.? If you do then they might be able to help you look at the different components.
