position that free rent is hard to get. The
longer the space has been vacant, the
stronger your negotiating position. If the
agent won't adjust or increase the free rent
on the offer to lease, do it yourself (in pen)
as a counter offer.
The agent, motivated by a greater
commission, may want you to sign the
longest term possible, but the landlord
may be flexible.
SELECT THE BEST LEASE LENGTH. While a
five-year lease term is still standard
(seven or 10 years in some cases), it is
not necessarily the best term for your
business. Three years, or even one year
for some coffee and tea shop tenants,
may be better if the cost of leasehold
improvements is low enough, as these
are generally amortized over the life of
a lease term. The agent, motivated by
a greater commission, may want you to
sign the longest term possible, but the
landlord may be flexible. Take the term
that is best for you and your business.
EDUCATE YOURSELF AND GET HELP. Unless you
have money to throw away, it pays to
educate yourself. Taking the time to read
about the subject or listen in on a webinar will make a difference. And don't forget to have your lease documents professionally reviewed before you sign them.
With hundreds of thousands of dollars in
rent at stake, as well as personal guarantees and other risks, you can't afford to
gamble. In leasing, coffee and tea shop
tenants don't get what they deserve.
They get what they negotiate.
freshcup.com | January 2014
31