What Went Wrong (with my lease negotiations)

Last week things went sour in my effort to obtain a lease for a third location in the downtown area of my hometown. I want to share with you my experience to show you that even when you make every effort to do things right, they can go wrong.
I have been looking for a third retail location for quite some time, with my primary focus on the downtown area of my city. This past summer I was approached by a landlord who had a corner space available, which I rejected it because the space required extensive renovation. I did however notice that there was a space in the same building that was of interest to me and asked the landlord if that spot was available. I suggested that he speak with the occupant to determine if they would be interested in selling the location (equipment and leaseholds) to me. I didn't hear back from the landlord so I moved on.
In late November I noticed a For Rent sign appeared in the window of the business I had asked about and immediately contacted the landlord to view the space. That very day I had a handshake agreement to purchase the equipment and leaseholds for $35,000. I viewed this as an excellent price for:

1. walk in refrigerator
2. double glass door cooler
3. double glass door freezer
4. single glass door cooler
5. large gas convection oven
6. gas grill
7. gas cooktop
8. gas stove
9. gas soup stock pot units
10. commercial dishwasher
11. cabinetry
12. flooring
13. 2 handicap washrooms
14. tables
15. health unit approval to use the space.

The main caveats were that I obtain a 30 day fixturing period to begin once I had a signed lease document, and that I obtain clear title to the equipment and fixtures. I asked my lawyer to put the verbal agreement into writing and submit an offer to lease based on my discussions with the landlord. Rather than negotiate the offer, their lawyer suggested we negotiate a lease document to save time which I agreed to. The month of December I waited on a document from the landlord which I could review and make changes to. When the document arrived, I made the changes I required and sent it back for signing. Early in the New Year after two weeks of no contact with the landlord's lawyer, I was informed that he didn't wish to sign a lease, but wished us to purchase the equipment and simply take possession and pay rent based on a verbal agreement. As I made clear in my post about Leasehold Improvements, those costs remain with the space after the tennant leaves. Given the landlord was refusing to provide a signed lease document, all of the money attached to leaseholds, as well as the money that would be spent on installation of equipment, would be lost should the landlord decide he wanted the space vacant in 60 days. While I could take the equipment with me, it is worthless unless I have a viable location to house the business.
Given the refusal of the landlord to provide a lease, I chose to pass on this location and keep looking. I remain disappointed because the space was ready to go with very little additional money required, and it afforded us an opportunity to bake and prepare our own food to be supplied to our other locations.
The main thing I hope to share is that no matter how many benefits a location offers, if there is a significant problem, walk away. In my case, the possibility that I could be evicted on 60 days notice wasn't worth the benefit of purchasing the leaseholds and equipment so cheaply.