negotiating rents for retail units

retail units

Hi,

Im new to renting retail units game. Im confused when im searching for a retail unit and they say rents are negotaible ? what am i negotiating?

any advice on this would be great??

do I have to say exaclty what kind of retail business im putting in or can i just say retail business?

I also have no idea what i should be paying for the retail space so how would i know to get the price down?

If my business didnt thrive, can you legally get out of the lease?

Any advice on this would be much appreciated?


Many Thanks in Advance.

Nicole

nino1

retail units wrote: »

Hi,

Im new to renting retail units game. Im confused when im searching for a retail unit and they say rents are negotaible ? what am i negotiating?

any advice on this would be great??

do I have to say exaclty what kind of retail business im putting in or can i just say retail business?

I also have no idea what i should be paying for the retail space so how would i know to get the price down?

If my business didnt thrive, can you legally get out of the lease?

Any advice on this would be much appreciated?


Many Thanks in Advance.

Nicole

Rents can vary depending on the type of business especially if its in a shopping centre.
YOu really need to get advise from your accountant or someone with experience in this field because rents and rates can make or break a business and you will get robbed blind if you go into your "negotiations" not having a clue whats a reasonable price.
Have you not made a business plan?
You really should have that researched at business plan stage.

retail units

hi,

thanks for your input.

I do know whats in my budget. but i'm talking can you ask for month to month rental basis, if you give 2 months in advance plus deposit. is anyone excepting these terms? I would not be renting prime retail space. I would be using retail units in residential areas first , just to see if my business took off.

sandin

Location location location.

Always look for the best location for your business - that's not always main street.

Landlords will want to see a business plan, short leases are available (called pop-up shop). Its always best to give all information as the landlord will use his/her opinion on whether the unit will succeed.

You can offer a rent + percent of business turnover or a straight forward rent.

If you are looking for a short lease, you will not get any incentives, if you eventually take out a 10 year lease, you can get as much as 6 months rent free.

Ask following -

Who are your customers?, where are they likely to shop?, is parking more important than being in a prime location?, how will people know you are there?


In my business, parking is extremely important, so prime location is in business parks / retail parks where rents are quite low and parking is plentiful - but I have to advertise extensively.

sandin

just saw this in another thread - based in Naas

http://www.bananaman.me/index.php

could be an ideal place to give your idea a try.

retail units

Thanks a million for that link. it looks really good.

paul71

A little off topic, but when renting a unit for the first time ask to see the rateable valuation and evidence that rates have been paid for the last 2 years. A new tenent is liable for any unaid rates for the previous 2 years and rates can be a very significant amount.

retail units

good advice.thanks very much. there is so much to know.