The Right Space.
Finding the right space is tough. Finding the right space with the right lease is even tougher. More often than not, you search the City high and low for the right space only to find out the landlord wants too much rent or has included unreasonable clauses. Sure you can make some sacrifices but sometimes it’s just too much. Be realistic about what the perfect space means to your business and what your business can afford. Sometimes it pays to jump on the opportunity and make some sacrifices. Other times it pays to keep looking. When you’re looking for a space you should consider the following: foot traffic, store exposure, space configuration, sunlight and sun exposure, local demographics and nearby transportation. Other factors will certainly come into play depending on your business. Before you start looking for a space, make a checklist of the factors that are important to you. Add weight to the most important items. Once you start viewing spaces make note of how each space addresses the items on your checklist. This will help you identify the right space for you. Hopefully you’ve found more than one…
The Right Lease.
Once you’ve found a few good spaces you can begin making proposals to the landlord(s). Once again you should make a checklist. First identify the material terms that are important to you. Ask yourself: Who will sign the lease? How long do I want or need the lease to run? Do I need an option to renew? How much am I willing to pay for this space? What should my initial offer be? How much security should I offer considering my leasing experience and history? What termination rights should I request? Do I need an allowance for tenant improvements? When will my lease begin? Who will pay the utilities and the taxes? You’ll need to decide which of these items are negotiable and which are not. Then you can present the landlords with your proposal. The landlord(s) will most likely come back with a counter offer or counter proposal. At this point you counter their counter. Now, based on the landlord’s response, you should begin to get an idea as to whether or not you can come to an agreement. This should help you narrow down your space options. By considering your checklist regarding the right space and the checklist regarding material terms, you should be able to decide on a space to move forward with. Of course you still need to review and negotiate the actual lease so keep a few backup options open.
We can help you find the right space and the right lease. Call if you need assistance: 212-575-2683.
Jeffrey Shepro, P.C. represents tenants and landlords.