The success of a Tennessee retail store location depends largely on the flow of customers through the store. Choosing a prime location is critical for visibility and foot traffic, but there are also other factors that could affect a store’s long-term success. One of these factors is the terms of the commercial lease. If the terms of a lease are unreasonable, unfair or unsustainable, it could put a retail business in a difficult position.
To avoid complications, it is best to negotiate a strong commercial lease agreement. When a landlord presents a contract to you as a potential tenant, it is critical to ensure the terms are not going to expose your business to unnecessary risks and the potential for financial loss. The terms that are in your lease agreement are important, as they have the potential to affect your company for years to come.
Negotiate from a position of strength
Preparation is crucial to negotiating the best terms for your commercial lease. You will find it helpful to learn about how you can pursue the best possible terms that will allow you to have security and stability as you occupy a new retail space. Helpful tips for the negotiation stage include:
- Know your budget going in, and have an idea of the issues you are not willing to budge on.
- Focus on negotiating for one location at a time, even if you have plans to expand.
- Never agree to the initial rent amount listed by the landlord, as this is often the maximum amount.
- Consider negotiating a longer lease in order to secure a better rent amount or other benefits.
- Check the square footage of the building and other details for yourself before you agree to terms.
- Know what the rent amount includes, such as insurance, repair costs and more.
- Negotiate for as many perks and inclusions as possible.
These tips can help you negotiate for a final agreement that is satisfactory for both parties. The goal for your negotiations is to secure terms that provide your retail business with stability long-term. Before you move into negotiations or consider signing an agreement, you may benefit from learning more about the possible ways you can protect the interests of your retail business and lay the foundation for a prosperous future through a strong commercial lease agreement.
