Shockingly, many restaurant leases fail to account for parking. More often, the landlord considers whether there is enough parking before entering into the restaurant lease negotiations, but they don’t account for it in their leases. Still, few, if any, restaurant leases actually guaranty parking or even address it. This article establishes the pros and cons of these provisions and provides some direction in each instance. Ultimately, and despite some of the following advice, it benefits benefits both the restaurant owner and the landlord to have an idea about what parking needs exist and what the requirements of those parking needs are.
When Should A Restaurant Lease Exclude A Parking Provision?
If you’re the restaurant owner, there are times to avoid the discussion of parking in your lease. One such instance is when you believe that your patrons’ parking will exceed a greater ratio of the parking lot than other tenants of a similar size. Another instance is when you believe that the landlord has greater leverage than you do in the lease terms. In either instance, the landlord is likely to put more restrictions on your parking than you would otherwise have.
When Should A Restaurant Lease Include A Parking Provision?
As mentioned above, it aids both parties to have certainty in a lease, and if that’s desired, include a parking provision. This is especially important if your restaurant requires a patron’s lengthy stay, like a fine dining restaurant that’s large. You might also insist on including a parking provision if the center or the area around the restaurant is already tight or congested.
Types Of Restaurant Lease Parking Provisions
There are many types of parking provisions in leases. These include:
A simple provision stating that sufficient parking will be provided;A specific provision stating an allocation of parking spaces;An even further specific provisions stating that certain spaces are allocated or reserved and others are generally open;A provision that requires restaurant employees to only park in certain areas; andA combination of any or all of the above.
What are your thoughts? Have you seen a good parking provision or have you had an issue in not including such a provision? Please let us know your thoughts!
About the author: Matthew Sanderson is a restaurant lawyer in Texas. “Good service with a smile” is his motto.