Determine where your customer lives by driving surrounding neighborhoods, looking at the placement of existing retailers, and touring potential shopping centers.

Try to zero in on geographic areas that contain your target audience, whether it is a wealthy suburb or an inner city ethnic area. Match the area to the clientele you believe is your target audience.

When identifying your prospective center, make a note of the closest street intersection. These centers should be located conveniently near your preferred customer base. Your PRS Professional can propose demographic profile reports based on these instructions.

Make a list of the shopping centers that surround your target audience. Your PRS Professional can help provide you with this information.
You can find out more information by searching out Shopping Center Lists under the Site Selection subject area.

Compare the quality of traffic generated by each of the centers and the respective anchor Tenant(s).

From major cities to the smallest town, please understand there was a Site Selection process, which resulted in the retailers building their sites where they did.

This is included to share with you a list of variables that most national tenants consider when selecting a location.

You can find out more information by searching out New Center Variables under the Site Selection subject area.

After you have viewed your prospective centers, make a list of the preferred locations.

Have demographic reports prepared on each shopping center, to compare which location mirrors your target audience the closest. Your PRS Professional can provide you with this information based on the intersection you recorded in Step 3 above.

You can find out more information on demographic reports and analyses, by searching out Demographic Analysis under the Demographics subject area.

Contact the landlord of your first and second preferred choices. For each response from a landlord, compare the details of the proposal by using the "New Space Variables" provided by your PRS Professional. Eventually you will want to include all these variables. Sometimes a third or fourth draft of a proposal is necessary to introduce all the variables.

The negotiation process from the proposal to a lease between the Landlord and the Tenant is analogous to the dating-engagement-marriage sequence for couples. You must start out slowly and win the Landlord over, then introduce more complex issues.

Once a relationship has formed and the Landlord has “time” invested in you, the Landlord is much less reluctant to end the relationship.

Once a final proposal is generated and executed by both the Landlord and the Tenant, a signed "Letter of Intent" is created.

The basis by which a lease will be generated is incorporated into a "Letter of Intent". This letter reflects the details agreed upon by the Landlord and Tenant to date. If either party changes these agreed upon business points after the “Letter of Intent” is signed, the risk of having the other party kill the deal is very high.

Sometimes a proposal evolves from the Letter of Intent, which is perfectly acceptable. The goal is to have various economic and business terms agreed to, which helps you secure the location.

Once a lease is generated, be responsive to the Landlord.

Have an experienced Real Estate Attorney review the lease document and provide changes that reflect your specific business needs and concerns.

Your PRS Professional can provide introductions to Attorneys that have negotiated for national retailers across the country. There is no charge for this service. Contact Your PRS Professional for more information.

To show sincere interest, lease comments should be typed and returned to the Landlord within a maximum of 7-10 days.

Remember, until you have a fully signed lease, your Landlord will continue to offer “your” space to other prospective Tenants. Some of these prospective Tenants may offer more rent dollars.

The Landlord's Attorney and your Attorney, or authorized representative, will address every provision to reach a mutually agreeable conclusion.

Once fully negotiated, you are very close to a deal.

Now you should focus on construction plans, contractor bids, hiring employees, etc.

The goal is for the Tenant to be prepared to begin leasehold improvements after the lease is fully executed.

Once the lease is fully negotiated the Landlord will normally produce the final documents in a few days.

This is your last chance to double check the terms and conditions per your original agreement of the deal. If you accept the lease, return the signed copy to the Landlord.

The Landlord will review and sign the lease. An original copy of the final lease will be returned to the Tenant.

CONGRATULATIONS! You are well on your way to opening your own business, but there is much more to do.

According to the lease, the Landlord will begin their work to the interior and/or exterior of your space.

Occasionally a Landlord will not even start making plans or talking to contractors until after the lease is fully executed. This is because some Tenants “walk away” or get cold feet at the 11th hour.

Note: Within your lease, try to include a projected deadline for the Landlord to complete the work and turn the space over to the Tenant.

This notice should be a formal part of the process. It usually consists of a certified letter sent to the address noted in the lease.

With lease in hand, the Tenant should inspect the premises to ensure compliance with the Landlord’s work, as defined in the construction exhibit of the lease.

To accept or reject turnover is a major Tenant decision. Acceptance of your space triggers your rent commencement date. To reject turnover postpones your projected opening date.

If accepted, send the Landlord a letter as an acknowledgement.

If you rejected the space, send the Landlord a letter which indicates the work still needing completion.

If you had to go through the turnover rejection step, most Landlords will resolve the open issues quickly because the sooner you start your business, the sooner they can start collecting rent.

Once turnover is accepted, the Tenant should be ready to start interior work. Each lease only provides “x” number of days to complete construction and be ready for business.

If you did not prepare for turnover earlier in the process you could miss your rent commencement date and have to pay rent without being open for business. Not good.

Your store is completed, the products are on the shelves, your software solutions are in place, and the employees are hired and, hopefully, trained. You're ready to open!

Your journey has begun, but there are so many more scenarios coming your way!

• Renewals.
• Options.
• Relocations.
  
  

Your PRS Professional is always here to help you!