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Leasing Tips For Retail - part 1

May 11, 2012


Leasing Tips For Retail - part 1
Part 1 - Leasing can be a costly headache for the inexperienced. www.Lease1.com.au have worked with Food Strategy on successful projects. They will be sharing their tips for leasing over coming blogs. So make sure you subscribe to Corkscrew to receive updates.
 ** 5 LEASING TIPS FOR RETAIL **

1.    Research is Mandatory
Regardless of any negotiations you enter into, research is required to establish the outcomes you need to achieve. In retail, tenancy leasing research is needed on your industry, your business, the shopping centre, the Landlord and the current market.
 
2.    Leverage Time
Every lease has two common elements, a commencement date and more importantly an expiry date.  Time can be your enemy or your friend.
Make a conscious decision to leverage your negotiations.  In most cases this means starting the process early.  Don’t be the one waiting for the Landlord to contact you, by then it’s too late.
 
3.    Benchmark Real Estate Performance
Make it your business to know how the real estate you lease performs for your business – not how you perform for the real estate (landlord).
Know your occupancy cost percentage and sales per square meter ratios and how these compare to industry benchmarks.
 
4.    Know your Lessor
Before any negotiation, know who you are dealing with, their structure, and their capacity to make decisions, the process/reporting they need to make to have a deal approved.
Remember always; the nice Leasing Executive who buys you a coffee is employed by the Lessor to increase their business returns.
 
5.    Know the Shopping Centre
Just like having your own product knowledge, details about the Lessor’s product – the shopping centre - are vital.
Know what the majors turnover, the sales of the centre, and the number of customers.
Find out how these compare to other similar shopping centres, because the Landlord is comparing your business against a wide range of others. Get Food Strategy involved before your design begins to be sure the shopping centre has vital infrastructure in place for your project.

Leasing is a natural progression to the design stage of your project. Meshing both steps will ensure your vision can become a reality.

More tips will be posted in coming blogs.
These retail shop lease tips and advice have been provided by Lease1 for the benefit of all retailers, please feel free to pass these along to colleagues, members, franchisees and anyone else who may benefit from same.

Food Strategy - Local people | Global vision.

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