Opening a retail storefront is a risky venture. Here\u2019s a short list of things to consider \u2013 not all pleasant \u2013 but it\u2019s best to go in with your eyes open.<\/p>\n
\u2022 You\u2019ll have less free time. As you begin your search for the perfect location, you\u2019ll be dealing with real estate agents who might be speaking in a language completely foreign to you. The best advice is to have an attorney review any lease before you sign, but listed here are a few terms you might hear and should be aware of:<\/p>\n \u2022 Base rent: the minimum monthly rent, usually computed on a square-foot-per-year basis, due under the lease Opening a retail storefront is a risky venture. Here\u2019s a short list of things to consider \u2013 not all pleasant<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-804","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/posts\/804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/comments?post=804"}],"version-history":[{"count":2,"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/posts\/804\/revisions"}],"predecessor-version":[{"id":806,"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/posts\/804\/revisions\/806"}],"wp:attachment":[{"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/media?parent=804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/categories?post=804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.qdigitizing.com\/blog\/wp-json\/wp\/v2\/tags?post=804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u2022 You\u2019ll have more responsibility.
\n\u2022 Your business won\u2019t be as private as it once was.
\n\u2022 Your employees will cost you at least 30% more than you agree to pay them.
\n\u2022 You\u2019ll make less money on higher sales (lower margins).
\n\u2022 You\u2019ll have increased exposure to business risks.
\n\u2022 You might be obligated to be open hours you didn\u2019t anticipate.
\n\u2022 You might not have the foot traffic you were promised or anticipated.
\n\u2022 All of your basic services, such as phone, Internet and utilities, will be more expensive.
\n\u2022 Depending on how you define success, a retail storefront might not be your best answer.
\n
\nReal Estate Terms<\/strong><\/p>\n
\n\u2022 Common area maintenance (CAM): an additional, annual charge often assessed to tenants for maintenance of the property\u2019s common area, such as its entryways, hallways or bathrooms
\n\u2022 Escalation: the mechanism in a lease that increases the rent, usually annually
\n\u2022 Gross lease: commonly specifies one rental amount inclusive of rent, taxes, utilities or maintenance, associated with the rental of a property
\n\u2022 Load factor: the amount of square footage in a lease, in addition to a tenant\u2019s usable square footage, which represents a tenant\u2019s pro rata share of the building\u2019s common area\/s; can also be referred to as a percentage of a building\u2019s rentable square feet
\n\u2022 Pass-through expense: an expense associated with tenancy in which the landlord \u201cpasses through\u201d to the tenant certain increases in building operating expenses occurring after a base year in the lease
\n\u2022 Percentage rent: provides for a rent to be paid as a percentage of retail sales, usually quarterly or annually
\n\u2022 Triple net: generally refers to the requirement for the lessee to pay for its share of the property\u2019s taxes, insurance and operating expenses; these are usually in addition to any CAM fees<\/p>\n","protected":false},"excerpt":{"rendered":"