Many California residents believe that online shopping is the best thing since sliced bread. No more battling traffic and crowds in order to shop, and the goods are delivered right to the front door. While this immensely popular way to shop retail is good for consumers, could it mean the end of malls?
Opening a business here in Orange County can be an exciting prospect. While contemplating the prospect of opening the doors, building a customer base and enjoying some success, an entrepreneur has many tasks to complete. One of them may be negotiating and signing a commercial lease.
As a large retail corporation, you know that developers may court you to lease space on their properties. You know that for them, leasing space in shopping centers is all about anchor tenants, of which you are one. This puts you in a unique position when it comes to negotiating commercial leases for retail space here in Orange County.
Last month we talked about common area maintenance and the wildly fluctuating fees property owners charge tenants in some cases. Fees for CAM, as the name suggests, go toward the maintenance of common areas, like parking lots. A given tenant's CAM costs principally depend on the amount of rented square footage, but the property owner has a lot of discretion in determining CAM costs. In other words, tenants should double-check that they aren't being over-charged.
Starting a new business here in Orange County, or anywhere in the state, requires you to look at numerous financial considerations. One of the monetary issues that you need to include in your planning involves the amount of rent you will pay for your retail space. This number ultimately involves more than just a price per square foot.
More than likely, one of the reasons that you chose to purchase a franchise was because much of the legwork needed to make your new business a success was already done. Even so, it will be up to you to make your particular franchise here in California a success. One of the crucial details that may not get enough attention is the negotiation and terms of the commercial lease for the location.
The title of this post is a cheeky reference to acclaimed fiction writer Raymond Carver, who died in 1988, and his 1981 short story collection What We Talk About When We Talk About Love. Many of Carver's stories are populated with "regular" characters facing workaday circumstances, like the fraught relationship between a husband and wife.
When you signed up to be part of a project, you more than likely had high hopes for its success. Then, in what may be best described as an uncertain economy here in California, you discover that finding tenants for your project is a challenge. Attracting tenants for shopping centers may require sweetening the pot with some additional benefits and amenities that may be attractive to them.
After constructing a new shopping center here in California, you may already have tenants lined up to occupy the space. As you work toward the official opening of the property, you will more than likely need to negotiate a commercial lease with each tenant. Even though there may be certain items specific to each tenant, each lease may need to include some standard provisions.
According to the Los Angeles Times, in its search, Amazon will prioritize areas with more than one million people, as well as those that are within 45 minutes of an international airport.