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How to Lease Retail Space. Leasing retail space can seem like a difficult task when you're starting a business or relocating an existing retail store. In order to ...
If you plan to open a retail store and need to find retail space for rent, you have countless options available to you. Many business owners choose to rent retail space instead of purchasing a commercial unit for a variety of reasons. If you are just starting out, you may be short on cash, and renting retail space may be your only option if you want to secure a prime location. If you have the money to purchase a commercial unit, the location you choose may not have any commercial properties for sale. Regardless of your reason for renting retail space, there are many factors that you should consider before signing a rental lease.
Finding the right retail space for rent can help boost your business by making you more available to current and future customers.
Ease of accessibility
If your customers can’t find you, you can’t sell to them. Make yourself more accessible by renting retail space in a populated area that’s easy for customers to locate. Because retail storefronts are generally located close together, you might also benefit from foot traffic that comes into your store after being drawn to the area by other businesses.
Peace of mind
Renting commercial real estate is different from renting residential real estate, and one of the biggest differences is the zoning that applies to each. If you formerly ran a business out of your home, you may have been restricted by zoning laws that forbade certain activities in your neighborhood. In areas with many retail spaces for rent, you can rest assured that your business is not only allowed to carry out its everyday activities there, but is also actively encouraged to do so.
If you rent retail space, you know that the facilities will remain consistent because other businesses are relying on them as well. Anything that disrupts the normal flow of business is sure to be remedied quickly. The sheer volume of available retail space for rent is also convenient, since it allows you to pick and choose which location you prefer. According to Great Realty Advisors, the total square footage of available retail space for rent has increased by 73 percent since 1982.
In addition to getting more customers because they can find you more easily, having retail space also lets you increase your inventory so that you can offer more for sale. You can also benefit financially if your lease restricts the property landlord from renting any other nearby space out to a competitor. This gives you exclusive access to customers in the vicinity who might be interested in your products or services.
Lease terms limit your use of rented space
If you are looking for retail space for rent, remember that you will be limited by the terms of any lease agreement you sign. For example, if the retail space you choose is located in a building that closes during certain hours, you won’t be able to operate your business during that time. You will have to abide by any rules set by the owner of the building. If you want the freedom to use your space any way you choose, renting might not be the best option for you.
Undesirable neighbors in rented buildings
Before renting a space for your business, find out what businesses operate in the surrounding spaces. If you intend to run a retail establishment, you don’t want excessively noisy neighbors. You may also want to consider whether nearby businesses create an atmosphere that’s appropriate for your store. When you rent, remember that you have no control over what businesses move in or out of neighboring spaces. Even if you’re happy with your current neighbors, a rental arrangement isn’t a permanent situation.
Less flexible moving options
When you rent a retail space, you will probably have to sign a lease agreement that covers a certain period of time. This will limit your options, especially if you end up wanting to change locations before the end of the lease period. It also means that you can be forced out of the space when the lease ends, even if you wanted to stay.
Less customizable space
Some building owners will be willing to work with you if you want to remodel a space to fit your needs, but others will restrict your freedom to make changes. If you want to customize a rented space, make sure you discuss this with the building owner before signing a lease agreement. Otherwise, you could end up renting a space that doesn’t work for your business.
Purchasing commercial and residential real estate can be quite costly, which is why many new entrepreneurs in the retail business choose to find retail space for rent. According to Moody’s Investors Service, commercial real estate prices rose for a third straight month in July 2011.
There is plenty of retail space available, and the price you pay to rent or lease space will vary depending on your location.
Most building owners determine their rental prices based on the property’s location and square footage. It generally costs more to rent in areas with a very large population. For example, if you rent retail space in New York City, you can expect to pay between $50 and $400 per square foot. If you plan to open your retail business in a rural area, you will get a much better deal. Also, individuals who own properties in rural areas are usually willing to negotiate, especially if the property has been vacant for a while.
Before starting your search for retail space, visit the locations that interest you. Speak to other retail business owners in those locations to get an idea of how much the space will cost, and inquire about any additional fees that you may have to pay. Ask for recommendations when searching for a real estate agent or broker, and only work with professional individuals who are familiar with the process of renting commercial units. It is also a good idea to frequent the locations that interest you the most. Pay attention to the amount of traffic that the surrounding stores receive; this can have a huge impact on your final decision.
Have you been searching for retail space for rent? Renting out retail space is often a better option than buying the space for any company. Renting space is a desirable option for businesses that do not have the capital to invest in a permanent location or that may change locations in the future. Many businesses also rent space for a limited time during busier seasons, eliminating to need to periodically buy or sell property or to continue paying mortgage on a property not in use for large parts of the year.
If you are thinking about renting space there are a number of things to keep in mind. You will want to consider the use of the space, how many people it will need to accommodate, whether it is conveniently located for employees, clients, and customers, the cost of course, and whether the individual renting out the property has a reputation for properly maintaining the retail space. Also consider the renter terms available and the time frame you will need to use the space.
There are likely a number of options in your area. You will want to consider several before choosing the space that is right for you. Business.com provides many quality resources to help you make your decision.
Browse the links to the left and find the retail space for rent that fits your needs.
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