You can estimate your sales floor needs using this simple calculation: sales volume divided by sales per square foot. You can find average retail sales per square foot at the statista website. [2] X Research source
There are also subscription services, such as Co-Star. However, you will have to pay in order to use them. If you can’t find anything using free searches, then you might want to consider a subscription service.
However, you might not want to be located too close to your competitors. It will be hard to distinguish yourself, and the public might already be loyal to established businesses.
Complementary businesses should target the same demographic as your business. For example, if you have a children’s clothing store, then being located near a daycare would be ideal. However, it’s not ideal to be located near a bar.
For example, you might open a high-end boutique. In that situation, you probably don’t want to be near public transportation, since higher-income people generally will drive.
Talk to your real estate attorney. They should know local brokers. Ask someone who rents commercial real estate. Tell them you are looking to rent and ask for the name of their broker. [9] X Research source Look at the Loopnet website and click on “Find a Broker. ”
Many landlords pay for the brokerage fee, so find that out ahead of time. [11] X Research source If the landlord pays, then using a broker is an ideal way to retail space.
For example, you might sign this agreement if you have a lot of confidence in the broker’s ability to find you a property, or if there isn’t a lot of retail space available in your town. [13] X Research source Consider a non-exclusive agreement instead, in which you pay the broker a fee only if they actually find you a property.
If possible, ask for proposals for at least two different properties. This way, you can play the two landlords against each other. [14] X Research source You’ll be in a stronger negotiating position if you have more than one option.
You can save yourself a lot of time and money by pulling a lawyer into the process at the very beginning. A lawyer can also help you negotiate if you are uncomfortable doing that.
Landlords typically prefer longer leases, so they might resist shortening it for you.
Also look to see how rent increases are handled. Landlords typically try to increase the rent every year. Make sure you understand how any increase is calculated. For example, the rent might rise along with the consumer price index. [16] X Research source
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Generally, the more important you are as a tenant, the higher your signage rights. For example, the most important tenants typically can get “building top” signage, which can be seen for blocks around. Less important tenants can get “eyebrow signage,” which is visible above the main entrance.
If the landlord wants a longer lease, then seek out a right to sublease the property. This is a fair tradeoff.
For example, you might run a yoga studio. You’ll want to exclude other yoga studios, but you also might want to exclude all other fitness-related businesses.
In your counteroffer, mention that you are also negotiating with another landlord. This news might spur the landlord to give you as many concessions as possible.
