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Here, well break down the steps to leasing a retail space. Prepare a business plan and budget. Preparation is vital. Develop a location strategy. Once you understand your goals and costs, choosing the right location is crucial for success. Source locations. Tour locations. Negotiate a letter of intent. Sign the lease.
How much does it cost to lease a shop in a mall?
Many malls charge by square foot with a range of $18 to $30 and up per square foot. Youll have to first inquire about shorter-term leases and then figure out what each mall charges in terms of fees, insurance, and deposits.
How does leasing a store work?
A retail lease is a legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years.
What is a shopping center lease?
A shopping center lease is an agreement between the landlord of the shopping center and the individual leasing the space in the shopping center. A shopping center lease, also called a private contract, will include the rent amount and the length of time the lease will cover.
How do mall leases work?
Tenant Responsibilities and Limitations Pay a base rent that is based on the stores square footage. Pay a percentage of gross sales (in some cases, not all). Pay a portion of expenses spent to maintain the shopping centers common areas. Pay a portion of the shopping centers property taxes.
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Gross Lease Gross leases work well if you are renting office space or retail space in a mall. The lease is calculated to include your share of all of the common operating costs of the space. In other words, your rent will include a prorated share of real estate tax, utilities, building insurance and janitorial costs.
Related links
Navigating Commercial Leases (REPM1-CE9597)
Examine standard office and retail lease forms, understand the motivations of the parties to a lease, and develop a framework for negotiation.
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