Why Choose UsGeneral Tips When Leasing Office, Retail, Warehouse, Medical, Tech Space Consider an Exclusivity Clause or a Non-Compete. This type of clause will prevent the landlord from leasing any additional office, retail, warehouse, medical, or tech space to a potential competitor in the same building. Be certain to include a Right to First Refusal if you are in the perfect space. Consumer traffic may shift after a few years or it may stay the same. It is nearly impossible to determine such shifts several years in advance. Having the option to stay or leave on your terms is a must for commercial space. If you are required to pay utilities or any other fee, ask to see receipts and bills from the previous year to be able to calculate your true costs. Do not take their estimated word for it. If they have not been paying these bills, they are unlikely to know with great certainty. Ask for a Sublease Provision. Much like the Right to First Refusal, you may want to leave your current space for any number of reasons. You might choose to diversify your product line, expand your business, or adapt to market shifts. Be certain your business is protected in these circumstances and that you have options.
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.