Finding a suitable retail space for your business will not always be an easy task. Aside from simply finding suitable properties, you will also need to negotiate a favorable lease for the property in question. This process may require a lot of back-and-forth between you and the landlord and can be quite tricky to get right on the first try. Luckily, there are some methods you can adopt to make the process a bit less time-consuming and a bit more stress-free. This guide explores several tips for negotiating a favorable retail lease without too much of a hassle.
Evaluate your needs in advance
It’s always best to be as prepared as possible before entering into lease negotiations. Knowing your needs in advance will help make sure that no stone is left unturned as you begin the negotiation process. Start by creating a list of basic requirements for your lease. This should include an itemized budget that includes the base rent, cost of utilities, and any other fees that may apply in your specific area or industry. You should also include a list of must-haves in a potential lease. This may include specific clauses, terms, or responsibilities for managing the property itself. Be sure to also consider your ideal lease length before entering negotiations. Having these criteria finalized before you enter negotiations will help you feel more confident throughout the entire process, allowing you to accurately determine whether a given property will work for your business.
Have multiple irons in the fire
One of the best tips for negotiating a favorable retail lease is to have multiple irons in the fire at once. This may seem a bit nerve wracking at first, but it will help you make the best decisions for your business in the long run. Negotiating on multiple leases at the same time puts you in a better position to bargain with potential landlords. Additionally, it provides you the opportunity to walk away from one negotiation in favor of a more beneficial opportunity. The negotiation process can take a while in some cases, especially when the negotiations take place over email. This added bit of back-and-forth allows you some added time to truly consider your options and create itemized lists to compare the advantages of different properties and leases.
Consider tenancy clauses
Tenancy clauses can be very easily overlooked when it comes to lease negotiations, but they can have a large impact on the success of your business. Co-tenancy clauses, for instance, allow you to break your lease in the event that a larger company that helps drive business to your store moves out of the multi-tenant building, effectively taking a large portion of your business with them. Similarly, you may consider adding a clause that prevents your potential landlord from renting a nearby space to one of your company’s direct competitors. The inclusion of such clauses helps protect your business in the long run and makes for a much more favorable lease overall.
For more information regarding the lease negotiation process or to view retail and flex space for lease in central Florida, contact our team at Demetree Real Estate Services.