Dependent Upon Mall Rent

Juan owns a specialty retail store in a mall. He'd like to renew his lease long-term in 2013. What can he do to get the best deal and continue to get the traffic he has in the mall?

QUESTION: Juan in San Antonio owns a specialty retail store in a mall. He’s been in business for 12 years, and he’d like to renew his lease long-term in 2013. What can he do to get the best deal and continue to get the traffic he has in the mall?

ANSWER: As long as you’re dependent upon the mall traffic, you’re dependent upon the mall rent. The only question is do they price themselves out of business by raising you to where you just say, “I can’t make any money at that”? As long as you’re paying extra rent and the results are extra profit because of extra sales, you just have to hold your nose and do it. It’s part of your model. The best way to reach your clientele is that. I will tell you that the crowd that you’re marketing to sounds like an internet crowd to me.

It wouldn’t hurt to have a good commercial real estate broker assist you in the negotiation or to have a real estate attorney. You really want to interview them tough because you don’t want them just taking your money to do what you were going to do anyway.

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