Negotiating a lease
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Pick the location best for your business and make the best deal you can there” because a bad location carries hidden costs such as fewer customers and the need for more advertising.
TIPS:
- Evaluate your space needs. Your lease term will likely be for many years, so plan accordingly.
- View a lot of properties. Make sure you’re comfortable with the price of comparable spaces.
- Ask for concessions from the landlord. Depending on the strength of the market, you can ask for things like a few months of free rent.
- Look for hidden expenses in the agreement. Charges above your fixed or base rent, like operating expenses, can surprise novices. They may not be in the term sheet, so ask specifically for this information.
- Don’t choose space based solely on the landlord. “There’s nothing in the lease that would prevent the landlord from selling to someone else the next day,” says Kaplan. “There’s a false element of trust.”
- Have a lawyer review the lease.
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