Strong negotiation skills can help you secure a desirable commercial real estate lease for your retail store in Idaho. You may want to first understand the possible clauses in a retail rental lease agreement and fair prices before negotiating.
Understand commercial real estate law
You could protect yourself from fraudulent leases by having a good working knowledge of Idaho’s commercial real estate laws. Landlords can only ask for up to one month’s worth of rent for the security deposit. Initial agreements can’t require the tenant to pay the property’s taxes or insurance. Landlords are only able to enter the property without permission in emergency situations that require access.
Ask for a competitor clause
It’s possible to include a competitor clause in retail rental lease agreements. If the landlord didn’t include one, you could request it during negotiations. A competitor clause prevents the landlord from leasing another space in the building to one of your competitors.
Make a counteroffer
Many landlords request the highest rent that they think a tenant is willing to pay. You may want to make a counteroffer that’s 10–15% less than the landlord’s initial offer. Having an understanding of the average property and utility prices in the area gives you more negotiating power. You could point to the numbers to support your request for a lower price.
Give and take
Before you start negotiations, you may want to clarify what matters most to you. If you find it critical that no competitors are in the same building, then you might want to accept a higher rental price in exchange for adding a competitor clause. If a competitor is already in the building, then you could use that reason to negotiate a lower rent and more lenient terms in the lease agreement.
The best retail lease agreements usually come from negotiating rather than accepting the first offer. In addition to looking at the rent and utilities, you may want to pay attention to other terms of using the space to ensure that you’re entering a fair agreement.
