1.
Visibility of Space: Is the sign band hidden
behind a row of trees?
2.
Accessibility of Space: Right in, right out? Or
full access.
3.
Store Size: Don’t pay for a space that’s too
big. What size do you really need. Prepare a test fit layout.
4.
Store Frontage: Example 20’ x 90’ and 30’ x 60’
are both 1800 feet but 30’ x 60 has 50% more frontage.
5.
Column Placement: Look inside the space. Does it
have a column you’ll have to contend with when you prepare a test fit layout?
6.
Base Rent: Have you also checked nearby shopping
centers to compare asking rents? You should.
7.
Pro Rata Charges: Ask for a cap on controllable
expenses to try and limit your NNN charge annual increases.
8.
Percentage Rent: Ask for an artificial
breakpoint vs. a natural breakpoint. Or ask to just report sales quarterly and
request no percentage rent.
9.
Term length: 3 years, 5 years, 10 years? How
long of a term do you want or need?
10.
Options: Did you ask for 1-2 options. You
should.
11.
Rent Start Date: Did you ask for enough build
out time? If you didn’t you’ll be paying “dead rent” vs enjoying free rent.
12.
Tenant Improvement Allowance: Is the landlord
going to contribute “dollars” to bring the existing conditions up to a vanilla
shell?
13.
Utilities: Do you need 200 amp service or 400
amp service? What is there now? Who will be paying for the upgrade in
electrical service?
14.
Co-tenancy Clause: Are you waiting for the
anchor to open to generate traffic? Did you ask for a anchor opening co-tenancy
clause?
15.
Exclusive: Did you ask for an exclusive so you’d
be the only “use” of your kind in the center? No one wants a competitor
alongside you.
16.
Use Clause: Is what you are going to sell well
defined. Is what you are going to sell tomorrow what you will be selling in 5 to
10 years? Your use clause defines and protects your flexible in what you can
and will sell.
17.
Relocation Clause: Do you have one, where the
landlord can relocate you after you open? How is it defined? Who pays for what?
It all needs to be defined.
18.
Sales Kickout? Did you know you could ask for a
provision that in the event you don’t achieve a negotiated level of sales you
can terminate the lease?
19.
Permit Contingency: If the city holds you up and
you can’t get a permit to start construction did you ask for a permit
contingency so your rent won’t start?
20.
Personal Guarantee Language: For how long are you liable to keep paying
rent, if you close your store?