Dear Betty,
I own a retail store on a busy street. Due to the slowing economy and rising overhead costs, some of my retail neighbors are closing. Sales are OKor me, we are lucky to get a lot of foot traffic, I want to remain in business. How can I renegotiate my lease and stay in business?
Dear Negotiator,
No landlord wants to see their block empty! The first rule of negotiation is to be prepared. Know the current market rent. The yearly cost is generated by multiplying the total square footage by the cost per square foot. Divide it by 12 for a monthly amount. For example, a 200 square foot location at $30 per square foot would be $7,000 for the year or $583.33 per month.
Other factors to consider: Has your rent been paid on time? How long have you leased from him/her? How are your sales? Build a compelling case for yourself. Possibly build a longer lease with sliding scale for a moderate yearly increase. Would you be willing to move to a smaller location that is more economical?
If the owner is unwilling to negotiate, you might want to consider sub-leasing space to another successful retail business. Having someone else in the store may be motivating during these difficult times and bring in a fresh, new customer base.
Please let me know how things work out.
Sincerely,
