If you want to rent retail space you should know how to negotiate the best lease for your company. You should consider that one of the biggest expenses incurred by growing companies is the cost to rent retail space. By knowing how to negotiate for the best lease you will be able to save your company money when you rent retail space and then you will be able to turn around and utilize that money saved in another facet of the company such as hiring additional employees to expand the company or launching a new advertising campaign. Since there will never be two identical leases when you need to rent retail space, there are a few broad topics to remember when you need to begin the negotiations.
Rent Retail Space
The first of these is the section that will dictate that you are permitted to use the retail space. You want to ensure that this clause as very broad when you rent retail space in case your company does use the saved money to expand the company or sublease the remaining space to another smaller company to turn an increased profit. When you rent retail space, landlords will often be more lenient when it comes to concessions if you sign a longer term. In spite of this, as the needs of your company will continue to change, you do not want to find yourself unable to expand because you are stuck in a long-term lease. It is in your best interest and the best interest of the company to negotiate a short term lease when you rent retail space.
Generally you will not find a fixed rent with a long term lease. Landlords might be very persistent when it comes to rent escalations and demand that the rent increase according to the increase in percentages for the Consumer Price Index. It would be in your best interest when you rent retail space to negotiate a predetermined fixed amount for rent escalation in the clause itself. You should remember when you are negotiating to rent retail space the costs that the landlord might pose on the company for area maintenance, operating costs, or HVAC costs. Should your agreement charge for those services separately, it is better for you to negotiate a cap on that amount or a fixed fee.
Whether you rent retail space which is old or new improvements will need to be made. Most of the time a lease will declare that the tenants are not able to make such improvements unless the landlord has consented. If you are a business you should negotiate for an additional clause which allows you to make improvements with consent but that the consent will not be withheld or delayed unreasonably. There might be a clause which states that you have to return all of the premises into their original state at the end of the lease. Look out for this clause when you rent retail space. If possible, try negotiating flexibility in terms of the assignment and subletting section so that you might be able to sublet in the case of mergers or share ownership changes.
Want to rent retail space from Hartman? Call today at 713-467-2222