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NEGOTIATING A GOOD RETAIL LEASE

Home > Money With Melanie > Business Development

03 / Mar / 2008

A little knowledge can be a very useful thing when negotiating a retail tenancy with landlords — and a lot of information even more useful. The reality is that smaller, independent operators, who do not have established retail networks, are extremely vulnerable to significant rental increases.

When negotiating a rent, you should be equipped with knowledge about the current retail rental market such as: what businesses with similar permitted uses are paying and their lease agreement terms; the previous use for the shop and any other relevant history; the area’s demographics; any plans for redevelopment or refurbishment; the centre’s anchors and their lease expiry dates; and average occupancy cost for businesses in the centre.

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