One of the most important parts of starting a retail business is selecting the right location. It’s important to have a store that is highly visible, that attracts foot traffic, and that provides sufficient space. Another critical aspect is price. Simply put, retailers need a location they can afford—and that means negotiating the very best terms in their real estate lease. In a new statement to the press, Kuester CRE provides some tips for doing just that.
“First, understand that whenever you lease a retail space, you’re committing to stay there for a certain span of time,” comments Shaw Kuester, President of Kuester CRE. “The standardis for a minimum of three years, but that’s not set in stone.”
A formal lease will specify the lease term, as well as other critical pieces of information. “Look to your lease document to denote the base rent, maintenance responsibilities, utility costs, security deposits, prepaid rent, and more,” Kuester notes.
It’s especially important to pay attention to the “triple net” charge, Kuester says. “This encompasses insurance, common area maintenance, and taxes,” he explains. “It can add quite a bit to the base rate—up to 35 percent each month.”
To actually begin the negotiation process, it may be smartest to contact a commercial real estate broker, like Kuester CRE. “We can collect some proposals to give you a sense of the basic terms and price range you can expect,” Kuester says. The broker can also negotiate better terms on the business owner’s behalf.
“If you handle the negotiations yourself, make sure you ask for some concessions from the original offer,” Kuester says. “These might include lower rates, graduated lease terms, limits on those triple net charges, utilities included in the base rate, even a few months of free rent. Once you arrive at terms you feel good about, finalize things and get ready to move in!”
For additional information about Kuester CRE and its services in commercial real estate development, brokerage, and management—including its assistance in retail lease negotiation—visit www.kuestercommercial.com.
Kuester CRE boasts more than 45 years of experience in commercial real estate, plus a reputation of trust and integrity throughout the Carolinas. The company focuses on brokering and leasing retail, office, medical, land, and flex property, as well as managing commercial buildings, apartments, and student housing. Kuester CRE delivers customized solutions for landlords, tenants, and investors at every stage of the commercial real estate process. With the unique ability to cover the Western Carolinas, Piedmont, and Eastern Carolinas, Kuester offers the responsiveness of a local presence with the resources of a larger regional firm.
To learn more about Kuester CRE, visit www.kuestercommercial.com.