Leasing your first retail space requires thoughtful consideration, but following these five steps can help you avoid making costly mistakes.
1. Research a Location The first step for opening a retail space involves researching an appropriate location. Ideally, you will lease real estate in an area close to similar establishments to benefit from existing foot traffic. Alternatively, if your business is unique, consider a location that is easily accessible to the customers you hope to attract. 2. Determine a Budget Before looking at spaces, calculate the monthly rent you can afford to pay. It is helpful to determine the minimum and maximum prices you can charge for your inventory and how much you can confidently sell each month to arrive at an affordable monthly rent figure. 3. Look at Potential Spaces After determining your budget, contact property representatives and landlords to arrange to look at spaces. Take notes about anything that might be helpful during a rent negotiation. 4. Begin Negotiating Once you find the appropriate space, you can enter lease negotiations with the landlord. Know your budget and negotiable and non-negotiable requirements. 5. Consult With a Business Attorney Before signing a retail lease, ask a business attorney to review it for oversights that could cost you money over time. For example, overlooking your tax and repair obligations could affect whether or not you can afford a lease. Performing careful due diligence before you lease real estate for your retail establishment is essential for your business's success.
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AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
January 2023
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