Like other retail establishments across the country, most located here in Orange County take as many steps as possible to avoid losses that could have an adverse effect on operations. Since there are many events that retailers cannot plan for, they do the next best thing and purchase insurance policies to cover losses associated with them. One policy many companies have is business interruption insurance, which is designed to cover a variety of expenses and lost revenue under certain conditions.
Orange County business owners looking to rent space will first need to enter into negotiations regarding the terms of that rental. No one should simply sign a commercial lease put in front of them without investigating the terms first in order to make sure their interests are protected. Below are just some of the issues to address when working out the terms of a lease.
Deciding to rent space here in Orange County instead of buying is a crucial business decision that affects the future of a business. Before the negotiations for a commercial retail lease begin, there is often a letter of intent from the landlord or property owner. This document outlines the basic terms the landlord expects for the final lease agreement.
Rental agreements for businesses here in Orange County and elsewhere usually last significantly longer than residential ones. When it comes time to renew these leases, tenants need to carefully consider whether it would be cost effective to move to a new location or to remain where they are. Before deciding not to renew a commercial lease, a tenant may want to consider some of the factors below.
Many of the country's shopping centers have relied on certain anchor stores for decades. However, many of them failed to survive the 2010s. The retail industry took several hits during the last decade, and as a new decade begins, store owners, developers and property owners will need to rethink how they do business. Keeping up with online stores like Amazon has proved expensive for many retail giants who used to serve as profitable anchor stores for shopping malls and shopping centers across the country, including many here in California.
Any edge could make the difference for an Orange County business. When it comes to the retail industry, this often means paying attention to the data. Consumers are shopping differently than in years past, so it is vital for a business to pay attention to what the statistics and other data says about what people in a certain area want.
There is no denying that brick and mortar stores here in California and elsewhere are suffering due to the ease and convenience of online shopping. Retail locations across the country are closing, and property owners are trying to figure out what comes next. It may be possible to give new life to these empty retail developments by converting them to distribution centers and/or warehouse space.
When searching for the perfect rental property in Orange County, business owners often spend a great deal of time on the interior space and common area maintenance, or CAMs. However, when considering a space and negotiating a commercial lease, it is also necessary to pay attention to the exterior aspects of the space as well. Three of the most important exterior factors include access, parking, and signage and visibility.
After finding the right retail space, a potential tenant will then enter into the negotiations with the landlord. The reason that it is important to negotiate the terms of a commercial lease is that rent is not based on just the square footage of the space. Orange County entrepreneurs may want to make sure they consider the load factor before signing anything.
Opening a traditional brick and mortar business anywhere, including here in Orange County, requires some consideration and math. The last thing a new retail business needs is to get the wrong size space, which could ultimately cut into any profits a company could make. Too large a space could cost more in rent while too small a space could prevent additional sales.