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Action Plan for managing your Retail Lease Renewal

7 Steps to Manage Your Retail Lease Renewal

Navigating the waters of Retail Lease Renewal requires foresight, preparation and strategic action. At BDC Property Partners, we understand the challenges and opportunities that come with lease negotiations.
 
We have prepared this guide along with recommended “Action Steps” to provide Retailers with a comprehensive roadmap for managing their Lease Renewal process.

From assessing your current business needs to negotiating favourable terms, our seven-step strategy guide ensures you’re well-equipped to secure a lease agreement that aligns with your business objectives and fosters growth.

Work with BDC Property to continually improve your Retail Lease Renewal options

1. Start Early with your Lease Renewal

Beginning the renewal process early gives you ample time to research, negotiate, and make informed decisions without the pressure of a looming deadline.

Action Steps:
• Mark your calendar with a start date for negotiations, ideally 12-18 months before your lease expires.
• Use this time to understand market trends and how they affect your negotiating power.

2. Evaluate Your Business Needs

Your business may have evolved since you first signed your lease. Assessing your current and future needs ensures your new Retail Lease supports your growth.

Action Steps:
• Consider space requirements, location, and lease length.
• Reflect on what worked and what didn’t in your current lease agreement.

3. Conduct Market Research

Understanding the current market conditions and comparable leases helps you negotiate from a position of strength.

Action Steps:
• Research rent prices, lease conditions, and incentives for similar properties.
• Consider partnering with a commercial Retail Property Expert for insights and leverage.

4. Develop a Negotiation Strategy

A clear strategy enables you to communicate your needs effectively and seek favourable terms.

Action Steps:
• Identify your must-haves versus nice-to-haves.
• Prepare to present your case, highlighting your value as a tenant and your business’s contribution to the property.

5. Negotiate Terms

Effective negotiation can lead to reduced costs, better terms, and enhanced Retail Lease flexibility.

Action Steps:
• Approach negotiations with a collaborative mindset.
• Be prepared to consider a compromise, but know your limits.

6. Review and Understand the Lease Agreement

A thorough understanding of your lease agreement helps avoid unfavourable terms and ensures compliance.

Action Steps:
• Review the lease document carefully, paying close attention to clauses related to rent increases, maintenance responsibilities, and termination rights.

7. Plan for the Future

Why It’s Important: Anticipating future needs and market changes can position your business for success and flexibility.

Action Steps:
• Negotiate clauses that offer flexibility, such as options to renew, expand, or contract your leased space.
• Stay informed about market trends and prepare to renegotiate as your business and the market evolve.

Successfully managing your Retail Lease Renewal is crucial
for the sustainability and growth of your business.

By starting early, understanding your needs, conducting thorough market research, developing a strategic negotiation plan, and carefully reviewing your Retail Lease Agreement, you can secure terms that support your business goals.

BDC Property Partners is here to assist you every step of the way, ensuring your Retail Lease Renewal process is smooth and beneficial.

If you’re interested in learning more about BDC Property and our services, please contact us today. We would be happy to discuss your retail business and help you prepare for future growth.

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