Opening a retail space in New York is a move that signals success. To keep it that way, you’ll need a favorable deal. You don’t want to end up paying more for the space than you can earn back in profits. At the same time, you don’t want to take a “sweet deal” on an abandoned area. Smart negotiation will be the key to getting a livable arrangement.
Decide in advance what you need
Real estate deals are a lot simpler to make when you have a clear idea of what you want and need. To begin with, you need to know the precise extent of your budget. You also need to know what equipment to stock your space with. It also helps to clearly understand what kind of goods you will be selling.
Does the kind of business you are setting up require outside parking? Will you need to install dressing rooms or other conveniences? These are matters whose answers will define the kind of space you need. There is also the question of what location you should choose. Should it be part of a shopping center or mall or completely detached?
Don’t take the first deal they offer
The formula for leasing real estate for commercial purposes isn’t as complex as it may seem. One of the biggest mistakes you can make is to take the first deal offered. Landlords lead with the highest amount they think they can get. But the key to getting a good deal is to negotiate. Feel free to do so until they hit on a price right for you.
Ask for a lower early termination fee
Suppose your business fails and you need to move out? What if it succeeds, and your present space becomes too small? In either case, you’ll have to end the lease. To do so, you will need to negotiate an early termination fee. The lowest possible fee should be agreed upon before signing your agreement.