How to Find Your Business Retail Location

Best Tips for Evaluating Retail Space for Rent

When looking at retail space, there are several things to remember. 

One of them is that only some retail areas are the same, so don’t just assume that one type of retail space is better than another without doing some research first.

Look at total costs, don’t just look at the rent; consider the total expenses too. If they’re high enough, the space might not be worth taking even if the rent is low.

What is the purpose of your store? Is it to sell products? Or do you want to provide a place where people can come together? These questions should help you decide what kind of business you’re starting.

Before signing any leases, you need to know who will handle the repair costs. Usually, this will be stated in the lease itself, but sometimes, it may be different.

It might be worth having another person review your dream listing before you submit it to an agent. Some commercial tenants run their listings by a commercial realtor to ensure they’re not taking on too much responsibility when renting out space.

Here are more details when finding your business location.

Ensuring a Fair Lease Agreement

Contrary to popular belief, the best leasing contract is actually a dialogue between the landlord and the renter. As the renter, your responsibility is to read through the contract thoroughly. 

Although the owner will eventually insert favorable terms for themselves into the contract, you can still negotiate. Moreover, you can constantly renegotiate the contract, including when rent is initially due.

From their point of view, they want to attract a long-term tenant to save money by advertising the space to potential renters. Because they know that if they can negotiate a favorable lease agreement with you, they won’t need to promote the property to attract new tenants. They can use that saved money to improve the property, handle any necessary repairs, and even make improvements to raise its overall worth.

Converting a Lease Agreement into an Option to Buy

It’s common now for people to invest in real estate, so if you’re thinking about investing in commercial properties shortly, tell the owner that you’d be interested in purchasing the building.

Buying an option means you don’t have to buy the retail space right now but instead give the seller a chance to sell it to you later. You may choose to purchase the option or not. If you decide to buy the opportunity, you must pay a fee to the seller for giving up a chance.

The best option for buying has these characteristics:

Right of first refusal: this would allow the tenant to make an offer on a property before the landlord puts it up for sale.

  • Transparent: There are clear rules regarding when the option to purchase is available, such as once the tenant has made a certain number of payments.
  • The amount of rent paid towards the purchase is written into the contract.

Look closely at your available retail space options to see if you have any excellent purchases.

A space for rent goes beyond just the rental fee

When choosing where to put your new business, you must consider the environment you seek. 

Where do you want customers to feel comfortable and relaxed? How much traffic do you expect to see? Will you require parking, or can you find a nearby garage? Is there enough foot traffic to support your business? Should any special requirements (such as handicapped access) be met? 

Once you’ve answered these questions, you’ll be able to narrow down your choices to a location that meets your needs.

Handle repairs and renovations

Every space will eventually require repairs, so it’s essential to set aside money for that purpose. 

Even though your area may be brand new, each renter will have needs. Both sides should agree upon how much rent they’ll pay per month, and then both sides should stick to those terms. No one can make an exception to the rules without the landlord’s permission.

Most commercial renters will want the landlord to take care of minor repairs, but most landlords will require commercial renters to be able to perform basic maintenance tasks.

You will still need to leave enough money for routine maintenance issues that the owner will only be able to fix after a while. For example, a blocked toilet is something that the renter will probably deal with, but a broken water line is something that the owner would take care of.

Use the recovering market to your advantage

Scrutinize retail space opportunities. Consumers are searching for experiences far from home because they’ve been quarantined for so long. About the retail sector, by identifying post-pandemic business opportunities, you’re taking advantage of the current market conditions while still offering great deals for your customers.

Leave a Comment