CPEX managing partner Timothy King, looking dapper in white jacket, black pants and bow tie at 2015 ICSC RECon in Las Vegas, has countless tips for retail tenants, owing to his 40-plus years in real estate. Here are his top five:
1) Research the property's ownership. A few minutes spent Googling the owner will uncover a history of litigation (if such a history exists) or bring other potential landmines to your attention.
2.) Mind your use. A restrictive-use clause limits your ability to alter your product or services in the future.
3.) Term. It’s critical for a lease to have a long enough period between the prime term as well as options to launch your new venture, recoup your upfront expenses, and have time left to operate—and profit.
4.) Assignment and sublet. Proper assignment and sublet language gives you the flexibility to sell or sublet your space if the right opportunity presents itself.
5.) The right attorney. You wouldn’t want a neurosurgeon operating on your heart, right? So as a business owner you don’t want to use the lawyer who wrote your will or handled your divorce to review your lease.
(Timothy is joined in this picture by CPEX colleagues Brian Leary, George Danut and Ryan Condren.)
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