Orange County Legal Blog

When looking for a location for a new store here in Orange County, a business owner may want to consider several factors. For instance, just because an area sees a lot of traffic does not necessarily make it a good location for a particular retail establishment. Before committing to sign a lease, it may be a good idea to look at factors that could have a significant impact on the success of a business.

For instance, it may help to look at the type of goods the business will sell. People who purchase specialty goods often have no issue with traveling a bit further to find them. Stores carrying these goods often do well in malls or near furniture stores, more expensive clothing stores and auto dealerships. These shopping stores carry goods that most people do not buy frequently, so they will want to compare prices, which is why these types of stores are often clustered together within a reasonable distance from each other.

California zoning boards may make decisions regarding whether a project is built in a commercial zone, an industrial zone or some other area. However, the public may also play a role in the decision making process when it comes to the placement of a development. Without the support of the surrounding community, a project may not move forward.

For instance, a health care network on the east coast attempted to build a methadone clinic in a neighborhood. The network planned to put in the clinic for months, but failed to consult with the members of the community until too late. The residents in the area where the clinic was to be feared that it would bring in crime and lower their property values.

There is no denying that the face of retail has transformed in recent years. Shopping centers and malls here in California and elsewhere no longer survive under the old development models. Moving forward may require some innovative and out-of-the-box thinking.

Shopping centers and malls full of stores that mass market products no longer fit what consumers want. Instead, these places may benefit from changing over to consumer engagement spaces. The theory behind CESs is to pull people in and offer them access to their interests and needs.

Regardless of whether retail properties here in Orange County are at a premium, prospective tenants still want to find the best deal possible. No one should sign a commercial lease if the terms price a tenant out of the space. Everyone involved wants to make a profit, so a balance needs to be struck between what the property owner needs and what the tenant needs.

One area of the lease where negotiations often occur is common area maintenance costs such as janitorial services, trash removal and pest control, among other things. Property owners and tenants ordinarily share these costs, but there could be some question as to whether a tenant should be sharing certain costs with the owner. For instance, should a tenant share the cost of improvements to the entire property?