Leasing Retail

If you are a business owner and are planning to lease retail space, make sure you do not make a costly mistake when choosing your location and negotiating your lease. Two of the most common mistakes retail tenants make when leasing space is not doing the necessary research prior to choosing a location and not utilizing the various professional services available to help during the leasing process.

Before you even start looking for locations, take the time to conduct the proper research and have a clear idea of what you are looking for and what you can afford. First, answer a few simple questions. What is your service or product? Who is your target consumer? What is your budget? What are your future plans? The answers to these questions can help guide your research. For example, you need not consider locations in an area zoned for bars and nightclubs if you are selling children’s toys. Likewise, you can rule out services for the elderly in an area populated by young singles. Your budget should be firmly mapped out and set in stone as well as a general idea of where you see the business in two, five and ten years. When determining your budget, make sure you have a budget set aside for the monthly lease payment as well as for utilities and maintenance. Include a budget for remodeling if necessary. Your future plans can be significant as most commercial leases are for a period of years, not months, with a lower monthly rate common when you agree to a longer lease period.

Finally, while paying for professional services can be an out of pocket expense in the short run, they often payoff ten fold in the long run. Use a market research company to determine where your target consumers are located. Depend on a commercial Realtor to find you the perfect space in the area you have chosen and pay an attorney to review your lease agreement to ensure that you do not make a costly mistake.

Leasing Retail

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