Opening a new business or moving an existing one to a new location is a significant undertaking. Even for the most focused and attentive California business owner, it is surprisingly easy to look over small but important details in this process. This is why it is important to take the time to thoroughly review one's commercial lease agreement, and negotiate when necessary.
Retail owners operating in the same Orange County location often have a symbiotic relationship. The success of one or two stores, usually the larger anchor tenants, will usually affect the success of the smaller ones, and the smaller stores may drive more traffic into the larger ones. For this reason, many commercial leases include co-leasing clauses for tenants in shopping centers.
Orange County retail business owners may be anxious to get into the rental space they have chosen before someone else snaps it up. Premium locations can be a challenge to find, so getting through the commercial lease process quickly is often a goal. However, that could be a mistake since the fine print could contain hidden costs that will drive up the price of rent and possibly jeopardize a business's success.
Many California shopping centers rely on the draw of their anchor tenants. As a result, many smaller businesses in shopping malls or centers may also rely on those tenants to obtain business due to the foot traffic generated by the bigger stores. Unfortunately, if an anchor tenant leaves a shopping center, the smaller stores could suffer. As a result, leasees may consider utilizing a co-leasing clause in their commercial lease.
There is no denying that a lot of things have changed in a short amount of time for people here in California and around the world. The question then becomes how these changes will affect the future, and nearly every individual and every industry is asking that question right now. The fact is that many markets, including the commercial real estate market, will probably see some changes.
Businesses looking to rent space in an Orange County shopping center have more work to do after they choose a location. Negotiating a commercial lease is one of the tasks requiring close attention. Understanding the jargon will certainly help in determining whether a potential tenant is receiving a good deal. One of the terms most future renters need to understand is "net," which is used in three separate types of leases -- the net lease, the double net lease and the triple net lease.
A good portion of California's real estate is already developed, but some of it is abandoned or no longer serves the purpose it once did. For instance, many shopping centers across the state are being redeveloped in order to give them new life. These new developments cater more to how people live today than they did when the structures were first built.
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.