Why Choose UsGeneral Tips for Every Space Do not wait until you must have a space. You will lose all negotiating power if you are in an urgent situation. If you are moving locations, it is ideal to begin your search roughly 18 months prior to the expiry date on your existing lease. It may take from 3 to 6 months to complete lease negotiations and to complete location enhancements.
Try to include a 90-day termination clause that states either party possesses the ability to terminate the lease with a notice of 90 days. This is often not favored by landlords, but in the right circumstance, they will reluctantly agree. If you have received an amazing offer on your ideal location, do not include it to be certain no one outbids you for the space and you are forced to vacate your perfect location.
Do not forget to ensure the space is handicapable.
Ask for information pertaining to any space prior to a viewing to avoid losing any negotiating powers and prepare a list of questions in advanced based on the information you have received.
Do not rely upon the certainty of just one space. You should always have at least one contingency location in case the landlord selects another renter. You can also leverage the two in negotiations to receive the best possible deal.
An annual increase of 3% is industry standard and in some circumstances 4% is considered acceptable if the landlord is willing to make continued improvements to your space.
Get everything in writing pertaining to anything the landlord promises you and maintain digital and hard copies of everything. If the landlord says they will allow you to pay rent on the 15th of every month rather than the 1st, get it in writing!
Common misconceptions when leasing commercial real estate
Leasing Tip #1: I have secured the perfect location, so I should ask for the longest lease possible.
People have short attention spans today and trends change faster than ever. You must be able to adapt to such shifts to survive; therefore, you should try to negotiate a shorter lease rather than a longer lease with the option to extend the lease at a reasonable increase in rent if you choose to stay.
Leasing Tip #2: You will grow into your space.
Often times, profit margins are far more fickle in retail than in other industries. It is important to evaluate your 5-year plan and to create a 5-year financial projection to determine your exact needs. You should consider product or service expansion and client growth to determine the exact space you need now and the space you need in 5 years. If you have empty space in a retail location, you are most likely losing money. Choose the proper-sized location for your existing needs and consider ways to expand the space for the future.
Leasing Tip #3: Selecting the right space will automatically make me money.
Even if you have selected a great space, you will still be required to make an effort in marketing to attract customers. If no one is aware of your location or organization, they cannot visit to make purchases. Marketing is an essential part of any successful business.
As long as you consider your needs for an office, retail, warehouse medical, or tech space and its location, the best approach to negotiations, and the general tips and misconceptions of the retail real estate industry, you will be certain to find the optimal retail location for the needs of your company.