Common Mistakes To Avoid When Leasing A Retail Space

If you go through a tried-and-trusted agent like Lease Wise, then retail leasing in Melbourne is easy enough. However, over the years, we have noticed several common mistakes that businesses or individuals often make when leasing retail property. 

Let’s go through some of these common mistakes so that you can learn to avoid them.

Not Fully Understanding The Lease Terms And Conditions

This is by far the most common mistake that we see many lessees make, where they sign a lease without fully understanding the terms and conditions inherent to the agreement. 

Examples might include not realising the implications of clauses related to rent escalation or failing to recognise that, as tenants, they have maintenance responsibilities. 

Other oversights might include not noticing that there is a lease duration and expiration date and how options to renew might work. 

Overlooking Hidden Costs

Speaking of hidden costs, many tenants make the mistake of underestimating how the additional costs associated with leasing a retail space can impact their budget. These costs can push the cost of a retail space beyond the base rent. 

Such hidden costs include things like common area maintenance fees, levies, security fees, insurance, utilities, marketing costs, and more. 

Planning for these costs is essential if you’re going to lease a retail property, and a suitably experienced retail leasing agency such as Lease Wise can help you identify and negotiate these costs to avoid nasty surprises later on.

Ignoring Location And Market Dynamics

Choosing the wrong location can be a death blow to retail businesses. Setting up your business in a retail space without taking note of the location and the market dynamics associated with that location is just bad business management practice. 

Many tenants make the mistake of prioritising low rent over factors such as foot traffic, competition, accessibility, and demographics. It is crucial for anyone renting a retail space to have a thorough understanding of the local market and the target customer audience before signing on the dotted line so that they can choose a location that aligns with the business’s goals and brand identity most accurately. 

A good leasing agency can help provide the right kind of market insights so that your business can choose the appropriate retail space to maximise its chances of success. 

Here at Lease Wise, we pride ourselves on helping our customers secure excellent retail spaces at reasonable prices. To maximise the potential of your business, contact us now to get excellent service in retail leasing in Melbourne today.