The boom in the retail business has led to an unprecedented demand for prime retail space on rent in big cities across India. It seems almost impossible to acquire a suitable space on your own. Seeking the help of verified property agents is the best way to proceed for multiple reasons.
The ideal location offers a strong potential of being successful in the business. Conduct research to find out where your audience spends time, where your competitors are successful. A property agent can be resourceful in providing demographic information and leads regarding the best properties available on rent.
Property Size / Area
Have a clear idea of the kind of space you require for the business. Let your property agent know what kind of business you have in mind including the expansion plan. This enables him to focus on properties that meet your specifications. Chalk out a store layout by examining your inventory and analyse the average size of spaces in the area you want to rent. A property agent is able to suggest options with a refined focus.
If you do not want to sign a long-term rental agreement, you should clarify this aspect because most retail properties are available on long-term lease. In case you are new to this business, you should avoid such a deal. Let your property agent know that you are testing the market before making any long-time commitment. There are options with short-term agreements and a good property agent will certainly assist you in this regard.
This critical process is best handled by a property agent as he knows the market well. The property size plays a key role in negotiating the terms and conditions. A property agent knows whether it is better to introduce you to an individual owner who is flexible or a big corporation with no room for negotiations. Depending on the ownership of the property, the process of negotiation differs. A property agent alone can secure the best deal for you. He understands the clauses of a rental agreement better. You have to pay rent for a specific time period irrespective of whether your business survives or not. There are several other aspects like water and sewer, prepaid rent, maintenance charges, and security deposit to be taken into account while negotiating with the property owner.
Let your property agent know the type of business you plan to set up. If it is to be operated during non-conventional business hours, this requires prior disclosure. Some buildings have operational restrictions so the property agent suggests the ones where no such rules are applicable.
There are several ways to frame an agreement. In some cases, the tenant pays utilities and property tax and the landlord bears maintenance, repairs, and insurance. If the property agent can negotiate a lower monthly rental rate, there is a big saving. If other costs are nominal and you have the option to bear them periodically, it is a viable proposal. The burden is lowered to some extent. A property agent guides you to choose the right rental structure for your business. In premium properties, the rate per square foot is often non-negotiable. But there are other perks – dedicated staff areas, parking, free wi-fi for customers, and in-mall marketing – any property agent can negotiate well.
A property agent’s access to privileged information, skill and experience at negotiations are valuable. Even if you successfully negotiate a deal on your own, you are likely to miss important market information a property agent provides.
There are so many properties available on rent. But a property agent knows the right type for your business. His solid understanding of markets in your area can help him shortlist space that is ideal for what you do. He does plenty of paperwork, organises inspections, negotiates and renegotiates terms on your behalf. Imagine the amount of time you need to invest in these activities. With the involvement of a property agent, the completion of the entire process can be done faster.
As property agents know the local market well, they can help clients find the most potentially profitable spots for their specific kind of business. For example, an upscale clothing retail company is able to pinpoint locations where their kind of merchandise is sought, and tap into the agent’s data on foot traffic and retail sales in certain areas.
Besides, property agents know the best buildings available – including any restrictions, zoning, and proposed development the client is unaware of. They are familiar with areas, trends, local business owners, and landlords. They have exclusive leads and news of offers not made available to the public. This gives them a winning edge.