How heavy is a personal guarantee on a California restaurant lease?

Question

Landlord in Orange County wants a full personal guarantee for a five year restaurant lease. We are a new entity. Is a burn-off or cap after 18 months something landlords still accept?

RusticNegotiator382 · Answer

Yes, especially if you put more TI or a larger deposit on the table. I have seen guarantees step down after 18 or 24 months of on-time rent. Get that in the LOI. It is harder after the lease draft is circulating.

CuriousAdvisor173 · Answer

If they will not burn it off, try a cap equal to 12 months of rent plus unamortized TI. A blank lifetime guarantee on a restaurant lease can follow you after you assign the deal.

How heavy is a personal guarantee on a California restaurant lease?

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