If you’re ready to jump into a commercial lease at a local mall, take a second to consider a few things that could affect you. Depending on the lease and the things you want to do, you need to be sure you’re signing a lease in your benefit. Here are a few things you can do to make sure your business is protected.
To start with, understand that a mall has high traffic and is a busy location. It’s a great place for an emerging business, assuming the business owner has the capital to pay for enough time at the location. It takes between 12 and 18 months to build up a brand following and new business, so it’s a good idea to choose a lease that extends at least that length of time. Longer leases are good for established businesses, since they provide stability and extra allowances.
Another thing to consider is fees. Many mall leases require the tenant to pay a portion of property taxes and utility bills. Depending on the kind of business you run, that could add up quickly. To help you save money, request that the landlord shows the areas included that you need to pay for and attempt to eliminate any common areas as much as possible.
Remember, competition is another thing to consider. You should seek a clause that prohibits the landlord from allowing a competitor in the mall. You should also note under which conditions it’s okay for the landlord to move your space or the space of other shops and identify what rent you would pay if you were moved elsewhere.
These are a few things to think about if you’re going to sign a lease for a facility in the mall. If you’re not sure about the lease you’re about to sign, your attorney can help you understand the terms.