In retail, location can break or make a deal. Your store’s location has a significant impact on your visibility and foot traffic. That is why you must take your time searching for and securing the best space. Once you have a desired place in mind, it’s time to negotiate.
Whether you are looking for your first Denver retail space for lease or your 10th, you need to set up your real space lease. A poor lease agreement can drain you financially even if you are achieving all your sales goals. This article will guide you when negotiating your lease:
Set a Budget and Know What’s Important To You
Before you start negotiating a real space lease, you must know how much you can afford, what your must-haves are, and the things that would be nice to have. For example, you may want to have a sublease if things go unfavorable for you; however, you may be able to do without free parking.
Hire a Real Estate Agent
Before you negotiate the lease on your own, consider getting an agent to do it for you if you can afford their service. After all, real estate agents are professionals and can get your deals and clauses you may not have noticed.
Avoid Paying Asked-Based Rent
Usually, landlords ask for a rent equivalent to the maximum amount of rent they think a tenant might be willing to pay. However, they do not really expect them to agree to this upfront amount. When making a counteroffer, come in at 10-15% lower than they are asking for. As negotiations go, you may be able to work out a figure in between that works for you and your landlord.
Get Accurate Measurement of the Space
You need to measure the exact square footage since commercial rent is paid by the square foot. Measuring the space yourself will ensure you don’t end up paying for square feet you cannot use.
Have a Lawyer Review your Lease
A lot of complex legal issues can arise when negotiating a commercial lease. An attorney who specializes in commercial leases can quickly identify any issues and pitfalls within the lease provisions. They can determine the terms that must be modified or added to give the appropriate and best protection for you. Also, your attorney can limit or eliminate the personal liability you are provided for or inform you of this liability and give you advice on how you can protect yourself.