How to Lease Retail Space

Leasing retail space can be a tedious process, but with the right knowledge it can be a lot easier. In this blog post we'll go over some of the basics of leasing commercial space, so you can feel confident in negotiating your next lease. Whether you're a business owner looking for your first storefront, or an experienced tenant ready to move to a new location, we've got you covered! So let's get started.

1) Understand the space

The first step in leasing retail space is to fully understand what you're looking at. Retail leases can be very different from each other, so your best bet is to consult a commercial real estate agent - they know all of the ins and outs of leasing retail space, and will help guide you through this process. If you don't have a particular agent in mind, feel free to reach out to us at JLL! We'd love to help you find the perfect location for your business. Also be sure that whoever you use as an agent has experience with both landlords and tenants – it's no good if your agent only knows how things work from one side.

2) How long do you want the lease?

Retail leases can usually be broken down into short term (usually 1-3 years), mid-term (3-7 years) and long term (more than 7 years). The length of the lease you sign will depend on the goals of your business. If you're looking to establish a new storefront, it's probably best to start with a short or medium term lease in order to test out the market and/or build up brand loyalty. Once customers know your name and what you're all about, you can opt for a longer lease that'll help keep your expenses more stable over time.

3) Lease rates

It's important to remember that commercial space is priced by both its size and location, which could mean two spaces right next to each other could vary drastically in price. Retail rates will also depend on the market that you're in. For example, Delhi NCR has some of the highest retail rents in all of India, while there are certain parts of India where commercial space is very cheap.

4) What's your budget?

Having a clear idea of what you can and can't afford is crucial when it comes to leasing retail space. You know what they say: stretch too far and you snap! Make sure to take into account not only rent but taxes, maintenance fees and any other common fees associated with occupying a particular storefront. A good tip for figuring out what kind of pricing range you should be looking at is to check out vacancy rates in the area, to see what other tenants are paying for similar space.

5) What's your business plan?

Lastly, you need to take into consideration how your company will run when it comes time to sign a lease. Will you have employees? If so, where will they park? Are you planning on hosting private events in the space? If so, do you know what kind of soundproofing and electrical work is required? These questions can help inform whether or not a particular retail location is right for your company. That's everything! With this info at hand you're ready to get started looking around for that perfect commercial real estate. So get out there and look around – we hope we find you soon!