This is especially
applicable when it comes to the end of term for your lease, particularly so if
you have exhausted your renewal options.
EXAMPLE:
If it took you
12-18 months to identify, lease, build and open your first location, then you
should start the lease renewal negotiation 12-18 months before your current end
of term if you want to stay in that location.
WHY?
Because if you and
your landlord can’t agree on a renewal rent structure and terms, then you will
need time to identify a satisfactory replacement location, negotiate and execute
a lease, secure new building permits and, finally, build out that space for a
smooth relocation of your current site.
The major
retailers I’ve worked with start the lease renewal process two years before
their current end of term date. I’ve seen single-store operators wait until
their lease is 3-6 months from expiration, then start the renewal process only
to get pressured into signing a new lease with an over-priced renewal rate,
because they didn’t have enough remaining time on their current lease to find
an acceptable alternate location.
