The 10 Things You Should Know About Leasing a Restaurant Space In Houston

Houston’s restaurant scene is booming, and every year, more and more food entrepreneurs jump at the chance to start their own culinary ventures. Leasing a restaurant space is a fantastic way to get started, as it is a cheaper alternative to buying or building your restaurant from scratch.

However, before signing a lease agreement, there are several things that you should keep in mind. To help you make an informed decision, we’ve compiled a list of the ten most important things you need to know about how to lease a restaurant space in Houston.

From understanding your options and negotiating terms with landlords to choosing the right location for your new business venture, here’s a complete guide that will provide all the insight and advice needed for navigating this unique opportunity successfully.


The restaurant business heavily relies on its location as it’s the first impression people have of your establishment. Ensure that your restaurant is in a high-traffic area that’s accessible via various modes of transport.

Lease Negotiations

A well-drafted lease agreement is crucial for you and the landlord. Having an attorney help you negotiate the lease agreement’s terms and conditions is always advisable.

Fit-Out Costs

Fit-out expenses arise when designing the restaurant space’s layout to suit your brand. You must budget for costs such as contractors’ fees and purchasing fixtures and equipment.

Utilities and Maintenance Costs

The expenses arising from the daily operations of a restaurant space are a crucial factor in determining its overall financial success. Before finalizing a lease agreement, ensure you clearly understand the costs for utilities and maintenance.

City Permits and Regulations

Different states have varying legal requirements for restaurants, depending on their line of business. Ensure you have obtained the necessary permits and licenses before opening your restaurant.

Repairs and Maintenance

Ensure the space is in good condition before leasing. Fixing these potential repair costs in writing in the lease agreement before signing is advisable.

Parking Facilities

Parking can be challenging in some areas, deterring potential customers from visiting. Ensure there is adequate parking near your restaurant space.

Lease Terms

The lease term shouldn’t be too short to run the risk of termination before the restaurant can establish itself. Similarly, too long a lease term can hamper change and growth. A lease that runs for at least 5-7 years with an option for renewal is ideal.

Non-compete Clause

A non-compete clause is a contractual agreement between the landlord and tenant. Ensure you are comfortable with the clause or make changes to reflect your business interest.


Co-tenancy involves sharing a building with other businesses. Ensure that the companies sharing the building don’t affect yours adversely and vice versa.

Starting your restaurant business in Houston can be an exciting journey, and leasing a restaurant space might be your best option. However, remember the ten most important things you should know when renting a restaurant space in Houston.

Ensure you have a well-defined lease agreement that protects your business interests, is beneficial, and avoids any issues when running your restaurant.

Finally, before signing the lease agreement, hire legal assistance to review the lease agreement to ensure that you are protected and your investment is secure.


Are you ready to start looking for the perfect space in Houston?


Let’s talk!

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