SHOP RENTAL THE SECRETS YOUR LANDLORD DOES NOT WANT YOU TO KNOW
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In my time as a landlord’s employee, I have seen people with fantastic products miss out on good shop space or miss out on lease renewals. I’ve also seen people with mediocre products or service, obtain and indeed keep shop space, and some of them for the ‘price of bread’. This book examines how to make sure you are in the group that actually secure rental space in a good quality location.
It can be argued that it is harder to retain your shop space once you have secured it. In this book, I will examine the shop rental related factors that can aid you maintain and sustain your business. A landlord can make or break your business. Remember when you lease shop space, you will cultivate a customer base. You will have a percentage of loyal customers. These customers might follow you to any new venue you move to. However a large percentage of your customer base will be “accidental” customers. Accidental customers are people who stumble on your business when they’re browsing around the precinct your shop is situated. This people will buy from you mainly because you are at a location they visit as opposed to because they were specifically looking for your shop. This makes your location very unique and specific. Remember that these accidental customers will now know where you are and will eventually convert to loyal customers.
If you already have a good location, you will always want to keep that shop as it will enable you to capture more and more accidental customers. However, you will want to keep the shop at a reasonable rent. It is therefore crucial to understand the things landlords look at and what you can do to maximise your chances of not only getting your lease renewed, but getting it renewed at the right price.
I examine all the relevant topics in this book. I have divided the topics in three parts.
Part 1 examines how to negotiate for a successful outcome when obtaining shop space.
Part 2 covers what you need to do to ensure success once you get the shop space.
Part 3 covers what you need to do to get your lease renewed at the right price.
DETAILED TABLE OF CONTENTS
Will your landlord classify you as the right tenant?
Why should it matter if you are defined as the wrong tenant?
Will your landlord classify you as being in the right location?
What are the implications of being defined as being in the wrong location?
PART 1: Negotiating a lease.
How much rent can I get from this guy? – Sales projection.
Will your business add value or detract from the precinct?
How long can this guy really trade for? – Marketing.
Exactly what does your lease allow you to sell?
Find out what other shops around you sell.
Just how reliable is the customer traffic count data?
How to interpret any precinct sales information provided by the landlord.
PART 2: You got the shop space now what?
Centre Manager’s importance.
Regular meetings called by the landlord (Centre Manager).
Struggling to pay rent; what are the implications?
Should I be best mates or enemies with a centre manager?
Marketing Manager’s importance.
Should I participate in marketing activities?
Operations Manager’s importance.
Relationship with other employees of the landlord.
My lease is coming up for renewal, what should I do?
Know your landlord and their negotiation tactics.
How to use landlord’s cost information in negotiations.
How to use your sales information in negotiations.
How to use your cost information in your negotiations.
Negotiations that can reduce your costs.
Other factors to negotiate on.
Throughout the book, I have provided specific examples of life situations, complete with the insider decision making process the landlord normally adopts.
ABOUT THE AUTHOR.
Mel Nicholas has spent the better part of a decade working for shopping centre landlords in over 20 different locations. During this time, she has dealt with a wide range of clients from small mum and dad stores to big national and international chains. She was always curious as to why some tenants seemed to have such sweet deals whilst others got the rough end of the stick. She observed the interrelationships between tenants and different employees of the landlord and was startled to notice a pattern. Successful tenants adopted a similar pattern no matter where the location was and who they were dealing with. Mel shares with us this pattern and what it takes to make sure you are one of the tenants with a “sweet deal”. These are never before discussed topics that have always been taboo to discuss. Mel reveals the shop rental secrets that no one wants you to know.
Mel Nicholas is a qualified Chartered Certified Accountant and holds a Masters Of Business Administration (M.B.A.) degree.