Tips for Leasing Retail Property in Melbourne

If you’re in the market for retail property for lease in Melbourne, then there are a few things you should keep in mind to ensure your business can thrive at its new location.

Melbourne is a competitive place, with plenty of retail stores vying for a piece of the consumer pie. Property owners know this and can be pretty unscrupulous. That’s why you need to be smart about how you go about leasing retail property in the city.

Here are a few tips to help you navigate this space a little better.

Negotiate The Lease Terms

If you’ve found a retail property that you like, attempt to negotiate favourable lease terms to ensure long-term success in the retail business. This means understanding the current market conditions and leveraging this knowledge during negotiations.

When entering lease negotiations, pay attention to details such as the lease duration, rent escalation clauses, responsibilities regarding maintenance, and any other hidden costs. By engaging with a retail property consultant and tenancy advocate such as LeaseWise during this process, you will have a better chance of securing favourable lease terms.

Location Analysis Is Key

With Melbourne being such a diverse city full of various neighbourhoods and districts with different opportunities and challenges for retail businesses, it’s important that you conduct thorough research so that the most desirable location for your business is determined.

Consider factors such as foot traffic, demographics, competition and accessibility when evaluating your retail prospect. Things like proximity to public transportation and parking, as well as other amenities, can enhance your retail store’s attractiveness and accessibility. This can also give you negotiation leverage, depending on the nature of your immediate surroundings.

Ultimately, you need to consider how your target market and the location align, what kinds of compromises you’d be willing to make, and how you might leverage these factors for better lease terms.

Always Go In With A Careful Financial Plan

Entering into a lease contract without a careful budget and financial plan that outlines the costs associated with leasing retail property can lead you into trouble.

By ensuring that your budget and financial plan are carefully affected, you can negotiate upfront expenses such as security deposits, leasehold improvements, and initial inventory purchases without any issues. Consider that you’ll have to deal with ongoing operational expenses such as utilities and staffing as well.

A realistic budget that accounts for all these expenses alongside your revenue projections will help you make a more informed choice regarding your lease.

Additionally, consider the season and nature of your retail business, current market trends and expected market fluctuations in consumer spending when doing your financial forecasting.

If you’re looking at retail property for lease in Melbourne, speak to the leading retail property consultants and tenancy advocates at LeaseWise today. We’ll ensure that your needs and rights as a tenant are taken care of so your retail business can thrive.