Are you looking for a retail space for your business? There are a lot of things to consider before you sign your lease agreement. Here are 5 important things to consider:
Lease duration and renewals
Before you sign your lease, it’s very important to be clear not only on the length of the lease but also on the rules around renewals. It’s a good idea to put a clause into your lease agreement that gives you the right to renew you’re your lease once the original term expires. This is important to have if you want stability and if you plan to invest money into the rental space. You may also want to consider the first right of refusal clause if the landlord chooses to sell. This will give you the option to buy the space.
Maintenance responsibilities
Be clear on the types of maintenance responsibilities that are up to you and what the landlord will take care of. Tenants are expected to perform regular upkeep of the property and ensure it remains at a certain level. Depending on the property type, you may be able to negotiate a maintenance plan that will work for both parties. But always make sure you know where your responsibilities lie.
Build out capabilities
There is generally a need for you to make some changes to the existing space to accommodate your business. You’ll want some flexibility to refine the space to make it ideal for how your retail operation works.
When making improvements to the space you’ll want to be clear on what you can do and who pays for what. There are several ways this can work. In some cases, the landlord will pay, or they could provide you with an allowance to make changes. Or you could pay. Learn more about this here – Tenant Improvements For Commercial Leases – Who Pays What?
Rent increases
Your rent will likely increase over time. Make sure to be aware of the terms of your rental agreement. You may be able to negotiate a rental increase percentage that works well for both parties. This will ensure there are no surprises when your lease comes up for renewal.
Service inclusions
Be clear on what is included in your lease agreement. Are utilities and electricity included? What about the maintenance of the exterior of the property? Know what you are getting in addition to the retail space as part of your lease agreement.
Get A Free Retail Construction Consultation
If you are planning a retail renovation project, we want to hear from you. We offer all potential clients a free design consultation. At Fuhrmann, we supply all-in-one retail building solutions. Learn more about our Retail Building Renovations services by requesting a free consultation with our design experts.
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