How to Lease a Business Location
Starting a new business is a big job with a number of challenges, but choosing the location of the business is one of the most important parts of the whole process. This is particularly true if you are opening a retail operation, where the location can literally make or break your business. Given these facts, a new business owner needs to be highly organized and thorough when searching for a location for the new business. Also, keep in mind that "location" is not just about location, but also about the building you are going to be leasing and the lease contract you are going to be signing.
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Instructions
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Develop a budget, checklist and wish list of criteria for the location of your business. The checklist should contain items that the location must have to even be considered, and the wish list should list features that you would like the location to offer.
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Research possible locations thoroughly. While most commercial real estate listings can be found online these days, it would be wise to work with a leasing agent, especially given that it will cost you nothing as she is paid by the lessor. It is important to look at several potential locations even if the very first one you see seems ideal, just so you can get a reasonable idea of the market and what is available to lease in the neighborhoods in which you are interested.
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Confirm with both the property owner and the planning/zoning department of your municipality that the location conforms to all code requirements and has all the necessary permits to operate your business once you have found a property that meets most or all of your criteria.
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Negotiate a lease with the owner of the property. There are several important considerations in this process. First, while rent is a certainly a major factor, paying a bit more rent for a place that offers almost everything you need to make your business a success is almost always a better decision than going with a location that is cheap but not ideal for your specific business. Second, try to negotiate a shorter lease (one year or less) if possible, especially if you are just starting a new business, as sometimes things just do not work out as planned and it is better to not be stuck in a long-term lease.
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Tips & Warnings
It is a good idea to at least have an experienced attorney look over a lease agreement before you sign it, especially if you are signing a long-term lease.
