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Leasing Tips for Retail - part 2

May 11, 2012

Leasing Tips for Retail - part 2
Part 2 - continuing on from our last post: the first 5 tips for leasing for retail -  www.Lease1.com.au have shared their next 5 top tips before you sign a lease.

6. Know your capital costs
Before you look at any new lease, renewal, or option, have a clear and concise knowledge of your fitout/refurbishment costs. Know how long you need to amortise these comfortably and make this known within the negotiations.  Your lease needs to reflect achieving these key performance Indicators as well.
7. Lease term to exceed amortisation
Following on from tip number 6, the lease term should always exceed the amortisation of capital period.  For example if your capital is a facility over 5 years then your lease needs to be over 6-7 years.
8.  Make meeting file notes
At each lease negotiations meeting, phone call, e-mail – make notes. Keep a file in date order that is easy to reference.
After each meeting confirm your understanding of the points back to those you meet or call. 
Continue after the lease has been entered into to maintain this file and continue with your notes – you never know when you will need to rely on these to protect your position.
9.  Create Relationships
Establish positive and regular communication and professional relationships with Landlords, Agents, Centre Mangers, even the cleaners.
You don’t have to like them but you are in business with them, much easier to raise a problem from within a positive relationship.
Remember Landlords keep file notes too – and have long memories.
10. Get Advice
Don’t go into lease negotiation without getting advice – not from friends or family, but from people who know.
Source advice from Industry Associations, professional commercial design consultants such as Food Strategy, Retailer Groups, Other Retailers, Franchisors, Government, Industry Experts, Retailer Advocates.
Don’t be afraid to ask even what may seem like the simplest of questions – get it wrong and it can cost you for a very long time.

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. (previous blog posts here)
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.

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