Are you looking to rent out a retail space?
Renting out retail space is one of the biggest decisions when opening up a store. If you don’t choose the right retail space, you may have trouble bringing in customers.
But what do you need to look for in a retail space? How do you know if you’ve found the right spot? Read on to learn what to look for when renting retail space.
1. Understand the Expenses
When renting retail space, one of the biggest things you need to keep in mind is that rent won’t be your only expense. Before you decide on a budget, you need to factor in all of the other costs.
The biggest expenses you need to consider are property taxes, maintenance costs, and insurance. The tax rate isn’t controlled by the landlord, so this is a non-negotiable expense.
Landlords also don’t have much control over building insurance, so you’ll need to be prepared to pay whatever the standard rate is. Typically, the landlord will have you pay a standard fee for building maintenance for the common areas.
Because these expenses are more controllable, you may be able to negotiate the rate. Some other costs you’ll need to factor into your monthly bill include:
- Utilities
- Furniture and equipment
- Fixtures
Plus, you’ll also want to set aside some money for marketing your space. For example, you may want to put a sign in the shop window so people can easily find you.
Research the Area
It’s also essential to research the area before you sign a lease for retail space. When choosing a location, the first thing you want to keep in mind is your customers.
For example, if you’re opening a golf shop, it may be beneficial to have your store near a golf course. It can also be helpful to choose a space that’s in a popular area so you can bring in more customers who just happen to be passing by.
When choosing the space, you also want to consider parking, what competitors are nearby, and how up and coming the neighborhood is.
Learn About the Landlord and Building Owner
Most commercial leases last for a minimum of two years. For this reason, it’s very important to make sure the landlord and building owner will make good business partners.
A lot of times, the landlord and the building owner aren’t the same people, so make sure you enquire about this when touring retail spaces. Ask as much as you can to get to know each of them. You should know how long they’ve been working in their current roles, how they communicate with their tenants, and what their course of action is if there are issues in the building.
If you have any questions, you can also ask Liberty Properties.
Are You Ready to Rent Retail Space?
With the above information in mind, you should be able to find retail space that suits your business’s needs. Don’t expect to fall in love with the first place you find.
Many times, it takes some searching to find the perfect space for your business. For more business tips, check back in with our blog.
