The Lease Coach
Approximately 2 million commercial lease-renewal transactions take place every year in North America. No matter where you are leasing commercial space for your independent or franchised restaurant, you will eventually have to face a lease-renewal with a landlord.
If there is only one piece of advice I could share with you, it would be to start the lease renewal process early – nine months to a year before your term expires. This will give you sufficient time to prepare for battle. If you can’t get a decent renewal rate, would you rather find out you need to move with three weeks or six months left on your lease term? Landlords in California are likely to ask for a rent increase on the renewal term and a restaurant tenant needs to start doing their homework now.
Remember that any strength or leverage may lessen the less time you have remaining on the lease term, so the farther in advance you can find out what the landlord wants to do with your tenancy and rental rate, the more time you will have to react. Most landlords want and plan to have their restaurant tenants renew, so you’re usually on the same page plan-wise anyway. It’s negotiating the rental rate that you may need some help from the Lease Coach.
To learn more and to hear more detailed discussion, join me at the Western Foodservice & Hospitality Expo Aug. 17–19 at the Anaheim Convention Center. Information on the two scheduled presentations is listed below:
13 Costly Mistakes Restaurant Tenants Make Negotiating Their Commercial Lease or Renewal
1:30–2:15 p.m. Sunday
10 Commandments of Leasing Commercial Space for Restaurant Tenants
2:30 – 3:15 p.m. Monday
Dale Willerton is a commercial lease consultants who works exclusively for tenants. He can be reached at 800.738.9202 or e-mail DaleWillerton@TheLeaseCoach.com.