15 Money Saving and Money Making Tips
The following tips below are very important, and often overlooked during the steps business owners take to launch their business in pursuit of their dream. If you find the tip helpful, clicking on the Read More will take you to a page with more detail on it.
Location, Location, Location
There are actually six variables that contribute to great site selection. Correct demographics, proper square footage, accessibility, visibility, parking and economics. Which is most important? The one you compromised on. (Read More)
Dead Rent, Free Rent and Build-out time
Dead rent is paying rent before you are open. Free rent is when you are open and not paying rent. Build out time is the number of days you have after landlord turnover before your rent starts. Don’t get them confused. (Read More)
Selecting a Broker
Please be aware there are residential brokers, industrial brokers, office brokers and commercial brokers. Selecting a commercial broker is the best way to ensure you are made aware of “off-market opportunities.” (Read More)
Norm in Commercial Leasing
Lease space for a ten-year term and you should receive two-five year options. Five-year term should receive a five-year option. (Read More)
Market Rent Options
Never agree to a “market rent” option. These are referred to as “phantom options” since they have little value and at the end of your initial term you will have to start the negotiation process all over again. (Read More)
If your lease is ready for signature and your financing package isn’t finalized, always ask for a financing contingency of 30-60 additional days. (Read More)
If leasing a space in a brand-new center, make sure you have an opening co-tenancy so you’re not forced to pay rent prior to the anchor being open. (Read More)
Make sure your prorata share is based on leasable space not leased space so your prorata share of CAM, Taxes, and Insurance won’t increase when tenants move out. (Read More)
Fight like hell to delete any landlord-imposed relocation language. Being forced to relocate within the center will cause a major disruption to your ongoing business even if the landlord pays for it. (Read More)
Make sure your signage paragraph in the LOI and lease addresses your storefront signage and your street front monument or pylon panel signage. (Read More)
For a first-generation space utilities will be brought to “the parcel”, “the building” or “the premises.” Ensuring utilities are brought to “the premises” will save the tenant the most money. (Read More)
Drafting the LOI
Either the landlord or the tenant can prepare the LOI. The tenant preparing the LOI allows them to include provisions they want and need and then the landlord must negotiate those provisions out rather than the tenant negotiating them in when the landlord prepared the LOI. (Read More)
Prior to accepting turnover or signing your lease PLEASE have the space professionally inspected. Concealed damage can then be incorporated into the negotiation requesting the landlord be responsible for correcting those issues.
CAP on NNN charges
Always request an annual cap on CAM increases. Even the large companies rarely secure a cap on Taxes and Insurance because the landlord has no control over these last two expenses but does CAM. (Read More)
Always request an exclusive for your business use to be assured you won’t have a competitor in the same center.