“How To Choose The Perfect Retail Space For Lease” written by Mike Marko.
Are you searching for the perfect retail space for lease?
Every business needs a space in order to start operating. Some business owners choose to buy properties while the majority choose to rent commercial space.
Since there is a demand for retail space for lease, there is a significant advantage for the property manager that wants to enter this market. But how do you enter this aspect of property management effectively?
To help you out, I’ve compiled some tips to help you with being a property manager for retail space for lease.
Tips In Looking For Retail Space For Lease
As a property manager renting retail space to business clients, its best to be as flexible and accommodating to the businesses that will inquire rental of the retail space. The more flexible and accommodating you are for customization of the retail space, the more chances you will be able to find the best business for your retail space
Most business owners are looking for the perfect retail space to build their businesses for a long period of time. Many of these types of retail businesses just don’t just settle on what is good or adequate location. Instead they look for the best possible options that will positively affect their business.
When a business owner decides what they need to have when choosing a retail space, you as a property manager should be willing to accommodate and customize as much as possible to their needs. When you are able to do this then the retail space you are offering for rent can be the property that is the best for their business.
Understanding what many business owners look for a retail space for lease is the first step to making the retail space you have for rent the most sought after on the rental market…
Benefits Of Leasing Retail Space For Businesses
When starting a business there are many costs and things to consider. One of the main things a business must decide on is to rent or buy the location that they will ultimately set up their business in…
So the process of finding and getting a property for your business is a big decision. Most business owners must decide if it would it be better to just buy a property or just rent one? Knowing business owners are both in the rental and purchase categories is important for your property management business when showing a retail space for their needs and business functions.
Often times a business looks for stability and a long term rental of a retail space when they have decided rental over purchasing of a property. Usually business owners prefer to rent a property than to purchase it because of the benefits that they can get and the cost is much more affordable than buying and customizing a property.
With the focus on rental of a retail space, let’s look into the reasons and benefits that most businesses would choose to rent over purchasing of a property…
Flexibility Of Leasing Business Premises
The first benefit that you could offer a business owner when renting a property is it provides more flexibility for their business as it grows.
When you choose to rent a property, you’ll be free from the responsibilities of being the property owner. Maintenance, fixing of damages, and other basic property needs are handled by a property management business. When renting the business owner can negotiate terms of the rental and make an agreement with the landlord or property manager as to how long you are going to rent the place. Knowing exactly what the business rental of retail space will cost monthly is key to helping business owners plan their budget easily. It allows them to easily move if they need a bigger space to expand their business.
When negotiating rental terms both the landlord and business can add clauses that would allow flexibility if the business is faltering or not doing well. The business owner always seeks flexibility and will attempt to add terms and clauses that help protect his business if it is not making a profit. As a property manager you will always push to guarantee the lease and terms so that the business will have stability and no worries that they could lose the retail space rental to another company…
Both the property manager and business can push to add clauses and terms to the lease agreement that protect them. But understand any clauses or terms to the lease must be agreed upon by both parties to the lease…
Lower Initial Payments In Leasing Retail Spaces
One of the most enticing elements of offering a rental of a retail space to a company is that the initial payments in leasing retail spaces are lower compared to buying retail spaces. Renting a property allows the business to have a healthy budget and more flexibility in their actual business they will be running. The money saved in leasing compared to buying the retail space can be used by the business for other operating expenses that could help them improve their business.
Another favorable option when renting over buying is that when renting a property instead of buying it will free the business from several burdens such as the rising interest rates and the Capital Gains Tax.
A rented property is also less potential for any kind of unexpected financial shocks…
Lesser Responsibility In Maintaining The Building
When providing a rental space for a business the responsibilities of maintaining the building and basic maintenance stays the responsibility of the property management business. This allows the business renting the retail space to focus more on their business because in most cases their only responsibility for the rented property is maintaining the inside of their retail space in the building.
The interior of the property will be your only priority. Usually, most rental property only needs minor repairs on its interior and the external appearance will be the landlord or the property manager’s responsibility.
Tips To Consider When Finding A Retail Space For Lease
As a property manager you should look for retail space rentals in high traffic areas. Finding retail spaces that will have high public visibility is key for a retail business to survive and to become profitable. Many times a business will only be looking for what can accommodate their retail space and not the location and volume of customers available.
As you find retail spaces to manage, if they are in good locations then those properties will be highly sought after.
From the business or company point of view they are looking for the best retail space to fill their needs and the best location to build and make their business profitable. A excellent rental of a retail space offers and fills the needs of a business while allowing you to rent the property at a high market value Looking for a retail space for lease is an intimidating task and there are certain aspects that you should know in renting a property that would contribute heavily on the fate of the business.
Locations that are less attractive for retail traffic are harder to find businesses to rent them and rents could be considerably lower than a high volume location.
So to build your property management business in the retail space market you should focus on the following factors when finding retail locations to rent…
1. Determine The Type Of Retail Space You Need
The following are factors are what a retail business owner would be looking for and should be considered in offering a retail space for lease.
Each of the following could affect the success rate of the business renting the retail space. Knowing this can help you better manage the properties.
Location – Make sure that your location will be somewhere accessible to clients and employees.
Traffic – You should also consider how easy it will be to reach your location
Size – Make sure that you know how big is the space you need according to the type of business that you will open.
Budget – Look for something that you can afford to lease.
Utilities – It would be better if the lease that you will get will include the water and electricity bill.
Amenities – Determine the type of special option that you may need for your business like security, fire prevention, and parking.
Length of lease needs to be determined to make sure building or space can accommodate company and needs
2. Look For A Commercial Real Estate Broker
Most businesses will consult with a commercial real estate broker before they look for a rental property. As a property management company you should be skilled and able to handle inquires and questions related to the retail spaces you have for rental…
If your property management company has a commercial real estate broker then you will be considered by most businesses to have access to listings of retail spaces. Additionally you can also give them the best possible properties that are perfect their business and budget.
As a business owner if you are looking for commercial real estate brokers then you could ask any local business owners or try searching at the National Association of Realtors to find the available real estate brokers near in your area.
3. Starting Your Own Search
Taking a business or company through the search to find the best property to meet their needs is the most important part of renting retail spaces to a company. Most companies will come with a set of requirements for the rental they are seeking. Knowing and understanding those needs and requirements will help you when assisting the company in finding the best retail space rental…
As a business owner you should begin the search on your own. Start searching for retail spaces online using LoopNet, MLS, and CoStar. Another option is to go to local areas and search for any postal signs for available retail spaces for lease.
This will help you better understand what the competition is like for your market.
4. Visit And Examine The Space
The best property managers will know and understand the locations, traffic, and availability of the retail space market. As a good property management firm you should be able to offer a list of possible retail spaces for lease and take the business owners to visit each one of those spaces. This will greatly help in accommodating the business owner’s needs as they are the only one who knows which property has the amenities they are looking for.
Keep in mind that looking for a commercial property is almost the same as looking for a residential property. The location and neighborhood matters. The property should be easy to find. Make sure to consider all the criteria that we tackled on the first point during your visit on the spaces.
5. Negotiate The Terms Of The Lease And Special Features
A good property management business will have multiple leases available to rent retail spaces. Some will include long terms of leases as well as other terms that allow the business to customize the retail space they are renting. Having a legally binding agreement between all parties is key to allowing the business to flourish while the property stays rented.
Before entering into a lease be sure that you negotiated on the best possible rate according to market demand and competition for the retail space that you are renting to the company. By understanding the market demand and competition, you can help ensure you are getting the best lease for the property.
Consult with a rental lawyer that specializes in commercial property to avoid the problems of having a bad contract. Your lawyer will review the contract and they’ll make sure that you are protected before you close the deal…
Final Thoughts On Looking For The Perfect Retail Space For Lease
There can be a great market for retail space for lease, and significant advantages for the property manager. That’s why we went over how to be a property manager for retail space for lease.
If you’re looking to be a property manager for retail space for lease, remember that its location, size, and amenities are important. It could contribute to your business’ success because it can help keep it rented.
Please feel free to add your questions or thoughts in the comment section below.
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