10 May 6 questions you should ask about shopping centre leases
Posted at 09:59h in Uncategorized
Are you entering into a shopping centre lease?
Here are some critical questions to consider:
- What will be my level of competition in the shopping centre? Larger centres often have an over-supply of similar businesses. An accurate picture of your level of competition is necessary for survival.
- Is there clear identification of the space I’m leasing and all the associated facilities?
You need clear identification of your leased area, parking and delivery facilities, and common areas like walkways. Ask for a site plan.
- What are the centre’s core trading hours? This may sound obvious but make sure the trading hours match your business and if they don’t, ask if there is any room for negotiation.
- When I’m fitting out the premises, will I have to conform to any fit out rules the centre may have? Fit outs are generally more restrictive for shopping centres. You need to know exactly what is required and what the cost will be.
- Will I be required to contribute financially to the centre’s marketing and promotional activities? If the answer is yes, try to negotiate a reasonable figure. If the answer is no, make sure this is not a hidden addition to the rent.
- Does the ownership have plans to redevelop or expand the centre, and could my business be impacted? You are entitled to know how the centre’s long term plans could affect your business; for example, relocation to a less desirable position.