Opening your own business is a big investment in time and money across many decisions. One of the hardest choices can be the location of your company, this can also be one of the most expensive. You want a location where customers can find you and with enough space to hold your inventory, but you do not want to break the bank doing it.
Set a Conservative Budget
The first step is to set a budget for your space and a good tip is to make it a conservative one. Ideally you will spend no more than ten percent of your monthly gross sales on your lease to ensure that you still have a comfortable margin. You will want to consider some other expenses in this budget such as property taxes, utilities and insurance as well as any broker fees, construction or maintenance costs to get a good idea of which retail property Denver locations will work the best for your company.
Choose a Lease Type
There are four main types of retail property leases to choose from, triple net, double net, single net and modified net. In triple net leases, the most common type, the landlord is responsible for structural repairs and the tenant takes care of everything else. Double net leases have the landlord responsible for maintenance while you will pay for utilities, property taxes and insurance costs. With a single net lease, you pay for utilities and property tax while the landlord covers insurance, maintenance and the rest. Modified net leases have the costs split evenly between the landlord and tenant.
Decide How Much Space You Need
Some shops can get by with smaller locations and others will need plenty of space for changing rooms, offices and inventory. You can find online formulas and calculators to help you choose an ideal space or you can make a list of what does and does not work at your current shop. It is a good idea to find four or five good options to assess which lets you list the pros and cons of each space and compare them against a list of your needs. You can even use these options to help you negotiate the final deal.
Choosing the right retail property for your business means determining what you need, how much you can spend, and which options are the best fit. The more research you put into this process, the easier it will be to secure a location which will meet your needs as you grow your company.