Location and Leasing Strategies


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"Location and Leasing Strategies" as presented by Andrew Hetzel of Cafemakers at the 2007 World Tea Expo in Atlanta, GA

Published in: Business, Economy & Finance
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Location and Leasing Strategies

  1. 1. Retail Location Selection and Leasing Strategies Andrew Hetzel, Cafemakers LLC
  2. 2. Retail locations determine the potential success of a business
  3. 3. Suitable sites and leasing conditions create advantages
  4. 4. Intuition and common sense are a gamble
  5. 5. Know where you want to be and why
  6. 6. Develop a location profile for your business
  7. 7. Go where the money is
  8. 8. Identify your customer
  9. 9. Convenience is king
  10. 10. Image is closely tied to location
  11. 11. Analyze the trading area
  12. 12. GIS software maps key data
  13. 13. Time is the measure of distance
  14. 14. Consider quality and characteristics of the population
  15. 15. Consider the cost and availability of store locations
  16. 16. Analyze your competitors' trading areas too
  17. 17. Don't forget about availability of labor
  18. 18. Select the style of site that represents your business
  19. 19. Are you a destination or a parasite?
  20. 20. Identify the size and operational requirements
  21. 21. Isolated stores are adaptable
  22. 22. Business districts offer variety
  23. 23. Shopping centers offer strength in numbers
  24. 24. Everything is negotiable
  25. 25. Landlords balance risk versus dollars
  26. 26. Maintain a positive approach
  27. 27. Set the boundaries of your agreement
  28. 28. Choose an experienced commercial real estate attorney
  29. 29. Letters of intent give you a foothold
  30. 30. Leave nothing to speculation
  31. 31. Have your side draft the lease
  32. 32. Some clauses add tenant value
  33. 33. Choose a term to match your business plan
  34. 34. Renewal clauses hedge your bets
  35. 35. Tenant improvements are your biggest opportunity
  36. 36. Step up rent gives new businesses a break
  37. 37. You can delay rent commencement
  38. 38. Caps put a limit on skyrocketing expenses
  39. 39. Co-tenancy clauses protect you from uncertainty
  40. 40. Beware of clause
  41. 41. CPI rent increases kick you when you're down
  42. 42. Percentage rent makes your landlord a silent partner
  43. 43. Administrative fees can grow unchecked
  44. 44. Continuous operations clauses block your exit
  45. 45. Indemnity goes both ways
  46. 46. Non-disturbance agreements combat subordination
  47. 47. Personal guarantees make you liable
  48. 48. Damage clauses can force you out
  49. 49. Always get notice for default
  50. 50. How do we keep track of all this information?
  51. 51. A good business will not succeed with a bad location
  52. 52. Use the assistance of professionals
  53. 53. Up-front planning can save or make you a substantial return
  54. 54. Every location should be a profitable asset to your business
  55. 55. Andrew Hetzel Cafemakers LLC www.cafemakers.com (808) 443-0290