Location is one of the most overused phrases in real estate. However, this is for a good reason. You should note that location can make or break your retail business. The location of the store has a huge impact on your foot traffic and visibility. Therefore, you need to take time to find and secure the best place. If you get a good location, then you need to negotiate your lease.
It does not matter whether you are renting the first physical location; the retail lease can be an important thing you need to set up. A poor lease agreement is likely to drain you financially even if you are making your sales goals. You will need to deal with different commercial property management companies. The following are tips to help you negotiate a commercial lease for a retail store.
Decide on Your Budget
Probably, this is the first thing you need to do before you settle on the exact budget. You need to know the things you got to have. For instance, you need to know whether you can sublease if things do not go as planned. In such a case, you may forego the free parking space given to you. Such nice-to-haves things will help you in negotiating your lease.
Hire an Agent or Lawyer
Before you start negotiating, you may consider hiring a lawyer to negotiate your lease to check whether it is within your budget. Remember that agents are experts. They can get you deals and clauses you have not noticed.
If you want your negotiation to have strength, consider negotiating for multiple locations at the same time. The good thing about this is that it will give you the opportunity to walk away from some negotiations. This will put you in a good position.
Do Not Pay Base Rent Asked
Usually, landlords ask for a given amount of rent upfront. This is the maximum amount of money they believe a tenant can agree to pay. However, landlords do not expect any person to agree to such an amount. Instead, you should come up with a counteroffer that is at least 10% of what they are asking for. After this, you can work out an amount in between that is fair for both of you.
You should note that space measurements get out of the date quite easily. This is because each commercial tenant wants to change the space to suit his or her needs. Ensure you check the exact square footage of the space you want to lease.