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How can you negotiate your retail lease agreement?

On Behalf of | Oct 18, 2021 | Real Estate |

When you are starting a New York retail store, you want to get the best deal on your lease agreement. A better lease agreement can put you in a better financial situation even if your business starts off slowly.

Know your budget and necessary expenses

Before you even try to negotiate your lease agreement, you should have an established budget and items you absolutely need to get things running. It’s a good real estate rule of thumb before you try to negotiate on an amount so that you don’t go overboard. You may also want to consider things you might want that aren’t absolutely must-haves.

Get an agent’s help

real estate agent can give you valuable advice and help you negotiate your retail lease as long as it fits within your budget. Often, it’s better to negotiate through an agent due to their expertise in the field.

Negotiate for several locations simultaneously

When you are trying to secure a real estate lease agreement, it’s wise to have your eye on more than one location. Negotiating on more than one property at the same time gives you an edge as it allows you to forgo one of them if the negotiation doesn’t go your way.

Negotiate a longer lease term

If you negotiate a longer lease term, it can help you to lower your base rent. You can get a distinct advantage if you work with the landlord to see what they are willing to offer you for a longer lease. You might be surprised at the extra things the landlord may offer in exchange for a longer lease term.

Negotiate lower early termination penalties

Try to negotiate with the landlord to get lower early termination penalties. When those fees are lower, you can save more money and get a better lease agreement. As a new retailer, this can benefit you significantly and you can put more focus on your business.