For the past few weeks, contributor Brian Walker has been sharing his Golden Rules of reducing your occupancy costs in a shopping centre.
The first three rules were all about research, including every question you should ask the property manager when considering a store location, all the key terms and conditions you need to know before you sign a lease agreement and how to diagnose your own business to ensure you’ll succeed in the centre.
The fourth rule was about negotiating with confidence. The fifth and final rule addresses what to do after you sign the lease to ensure you can afford your rent going forward.
Golden Rule #5: Underestimate the sales, overestimate the costs, then sell more
Understanding your trading environment (or proposed trading environment), your own business model and your lease contract on an intimate level are the key underpinnings of successfully driving down your occupancy costs.
Sound easy? It really is.
While signing a lease agreement can seem scary, it’s actually a logical process, which is simply taken for granted.
The next time you’re considering entering a new centre or extending your lease in your current one, you can bet that at least one party in the negotiation will have done their homework – make sure that it’s you.
Happy ‘fit’ retailing!
Here’s a look back at the 5 Golden Rules of reducing your occupancy costs:
- Golden Rule #1: Research, research, research
- Golden Rule #2: Know your lease
- Golden Rule #3: Mind your own business
- Golden Rule #4: Negotiate confidently
- Golden Rule #5: Underestimate the sales, overestimate the costs, then sell more
