Retail Lease Negotiation Tips

Retail Lease Negotiation Tips

Whether you’re first opening up or moving someplace new, keep these tips in mind for negotiating your retail lease.

For many successful businesses, the magic formula comes down to having a great business plan, at the right time, in the right location. After all, if your business isn’t where people can find you, it doesn’t do any good to have gotten the other factors right. You’re not trying to spend too much on rent every month, though, even for the perfect space. Whether you’re first opening up or moving someplace new, keep these tips in mind for negotiating your retail lease.


Determining your budget needs to be the first thing you do. Use your projections and business plan to help you figure out how much rent you can afford, then make a list of the qualities and amenities that you have to have and that you’d like to have in your space. Use this information as your starting point for your search and stick to it during negotiations.

Lease Type

Another important factor in your lease is going to be lease type. Most commercial property leases are longterm, but don’t commit to anything more than you feel comfortable with for your business. If you do opt for a longterm lease, make sure there are provisions about co-occupancy and non-compete clauses, so that you don’t end up stuck somewhere that has become bad for your business. Finally, be aware that there are often different ways that the lease addresses who pays for utilities, property taxes, upkeep, and insurance. Make sure that the lease you negotiate lays out all of that information.

Counter Offer

Remember that most landlords will list at a higher price than they actually expect, since they anticipate haggling. Always offer a counter offer that is lower than your budget amount and be prepared to negotiate into a middle ground area. It is also advised that you review several properties at the same time, since it is likely the landlord is negotiating with multiple potential tenants. That way, if it falls through, you aren’t starting completely from scratch.


When the market favors renters, landlords might offer inducements. These are little benefits to the renter that a landlord offers to sweeten the deal. For instance, they may offer to pay the penalty for breaking your current lease, or to help with moving expenses. If the area you’re interesting in has a lot of open properties, inducements are more likely going to be an option.

Trust the Professionals at Clagett Enterprises for Your Realty Needs

If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.

This entry was posted on Thursday, December 31st, 2020 at 6:23 pm. Responses are currently closed, but you can trackback from your own site.