How might the leasehold improvements be higher for a Corcoran franchisee?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
d tenant improvements are necessary, depending on the type of structure. Leasehold improvements may be higher for a franchisee who does not already have a real estate brokerage office that will serve as the Office.
- [6] Simple single face box signs are estimated at $700 and large building signs are estimated at $20,000 (excluding installation costs.)
- [7] Yard signs are estimated at $25 to $60 per sign with metal frames estimated at $35 each, and $40 to $80 per post.
- [8] Open house signs are estimated at $17 to $90 per sign including frame.
- [9] Rider signs are estimated at $7 to $17 per sign, depending upon the supplier selected.
- [10] Name badges range from $6 to $20 each, depending on materials and clasp mechanisms.
- [11] Includes items such
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, leasehold improvement costs can vary significantly for franchisees. The FDD indicates that if a franchisee does not already own a real estate brokerage office, their leasehold improvements may be higher. This is because they will need to build out an office space that meets Corcoran's brand standards.
The estimated initial investment table shows that leasehold improvements can range from $0 to $105,000, payable in progress payments before opening to contractors. The wide range suggests that the condition of the space before the build-out greatly impacts the overall cost. Typical build-out costs are estimated to be between $35 to $75 per square foot when significant construction and tenant improvements are necessary, depending on the type of structure.
Furthermore, the length of the lease can also affect leasehold improvement costs. While some tenants may negotiate for the landlord to cover most or all of the tenant improvements, this is not always the case. Therefore, a prospective Corcoran franchisee should carefully consider the condition of the office space they intend to lease and negotiate lease terms that minimize their out-of-pocket expenses for leasehold improvements.