Whether you are renting your first location or your third, your retail space lease is the most significant thing you set up. Even if you are meeting all your sales goals, you can still be drained financially if you have a poor lease agreement. If you are looking for retail spaces for lease, below are some tips to help you negotiate a favorable lease:
Know your Priorities
Start by settling on your specific budget, the things you must have and those that would be nice to have. For example, you may want to sublease if things go belly-up; however, you may be able to forego free parking. The things that you consider nice to haves can be your negotiating chips.
Partner with an Agent or Attorney
Before you jump in headfirst, get an agent or attorney to negotiate your lease for you if you can afford their service. These experts can get your deals and clauses that you may have failed to notice.
Check the Square Footage Yourself
It is easy for space measurements to get out of date because every commercial tenant changes the space to fit their needs. You will be renting the usable space and the square footage may have shrunk significantly. Also, landlords may include in the square footage parts of the common area of the building or simply inflate the square footage. Keep in mind that you will be paying commercial rent per square foot.
Negotiate a Longer Lease Term
A base rate negotiation will help you achieve the minimum lease length with the maximum benefits. Ask what your landlord is willing to give in exchange for committed tenancy. In this aspect, you may have to negotiate future renewal options. For instance, if you cannot exactly what you want when you commit to a full three-year lease, you may be able to compromise on a two-year lease with an option to renew with a very low rent increase.
Negotiate for Available Perks
Haggling with a corporate landlord over some things such as the base rent and lease structure can be difficult. However, corporate landlords will provide other things you might be able to get for free like free employee parking or Wi-Fi. These perks could you save you some money in the long run. Thus, try not to settle just because the landlord makes it seem like a negotiation is not possible on the lease.