Commercial real estate is on the upswing. As the economy improved in 2014, so did it. Real estate agents reported real gains in the third quarter of that year. The trend continued in 2015 when office and retail vacancy declined. All of this means, if you are looking for small retail space for rent, it may be a more challenging task than before. That should not discourage you. There are good opportunities out there, you just have to ferret them out.
Tips to Make Your Search for a Small Retail Space for Rent Easier:
- If small is what you are looking for, you are in luck. Looking for a small retail space for rent is a lot easier than if you need a larger one. As the market has shifted, spaces that once had not been available for smaller businesses have opened up making it easier for companies who need less space than more find good deals on their rental spaces. Some landlords that may not have considered looking at small businesses see the value in diversification and have opened up their spaces to new smaller tenants. Take advantage of that.
- Renters can be shady and so can landlords. Look into the buildings’ owners when you are looking for that small retail space for rent. Look into your prospective landlord’s finances just as they will yours. You want to know you are getting that business space for rent from someone reputable. Making sure your landlord is not in financial trouble that might hurt your business. You have your brand to consider and should they be foreclosed on and you have to vacate, that can look bad for you.
- Do not settle when it comes to the length of the lease. Ask for the lease you want. Remember, if you do not ask, they cannot say yes. Before you ask for a lease term, and there is a decent chance you will get what you want, really consider your needs. How long have you been in business? Are you a start up company? If you are just starting out, you want a short lease to give you a chance to get out should your venture not work out as planned. Then again, if you are celebrating ten years in business and are opening a new location, you may want the comfort of a longer lease.
- Negotiate. Pretty much everything these days is negotiable. Even though the vacancy level for office and retail space has dropped, you still should not take the first offer. Your thriving business brings something to the table, too. Your reputation helps theirs. Other things that are open for negotiation are any renovations the place may need and future rents and limits on how much they can increase. This is also a good time to bring up things like maintenance, janitorial and those kinds of expenses that any commercial property for rent will have to contend with.
- Talk about the security deposit. This is one area where you may not have much wiggle room. Unless you do have a well established business, there is always the chance that you can not make it and then leave their small retail space for rent vacant. The more concessions you can get from your new landlord, the less likely they are going to be to want to work with you on the security deposit.
- Remember the law when looking at space. If you are looking for a small retail space for rent, there are still some rules you have to follow. You need to comply with all of the regulations set out in the Americans with Disabilities Act. If a business has more then 15 employees or is open to the public it has to accessible to people with disabilities. Sometimes business owners do not consider that when they are looking at space.
- Work with a broker. It may seen easy enough to negotiate a lease, you did it for you home, right? Not so much. Negotiating for commercial space for lease or retail space for lease can be a lot different. Not only can the broker help you find space but they can be really helpful in negotiating the details of your final lease.