FranchiseCanada SeptemberOctober 2017

FranchiseCanada September | October 2017 105

When it comes to finding a

home for your new (or even

expanding) business, there

is a great deal of truth in the

adage of “location, location, loca-

tion.” The commercial space cho-

sen by a tenant can be a deciding

factor in the success or failure of

the business.

Here are just a few of the addi-

tional factors you should evaluate

when viewing available commercial

space for lease and consider before

signing on the dotted line:

Location within the location. Where

is the commercial unit situated

within the property? Would you be

leasing inside a plaza/mall or on the

pad outside? Would you be located

at the end of an abandoned corridor

or beside the busy food court?

Accessibility. How easily can your

customers access your business?

Are there stairs leading to your

front door? If so, elderly customers

may have difficulty getting to your

door. If customers rely on an eleva-

tor within the commercial property

to reach your business, when was it

last inspected and/or serviced? Can

drivers easily turn into your busi-

ness’ parking lot, or do they have to

cross in front of oncoming traffic?

Visibility. Can your business be

seen from the street? Or, are there

trees or other buildings blocking the

view? Visibility by both drive-by and

walk-by traffic is ideal.

Parking. Parking can be a highly

contentious issue, and is one of the

hardest things to correct after the

lease has been signed. Typically,

there are only so many parking

spaces assigned and, once they are

taken, they are gone. Negotiate for

plenty of parking spots so that you,

your staff, and your customers all

have a place to leave vehicles. Con-

sider where those parking spaces

are located as well – the closer to

your business door, the better.

Signage. What signage is available

to you? What type of signage is this?

Where is it located? Can you place

signage on the side or the rear of the

building? Where would your busi-

ness name be placed on a common

pylon sign shared by other tenants?

Would you be charged for any addi-

tional signage requested? Negotiate

now for “grand opening” or “promo-

tional” signage (e.g. banners and/or

pull-away signs).

Neighbouring tenants. Ascertain

who is doing business directly next

door to you. Will this tenant be con-

ducive or detrimental to your busi-

ness? While asking the landlord/

landlord’s agent about these neigh-

bouring tenants, it can be a good

idea to meet and quiz these tenants

for yourself. Be friendly and polite

and introduce yourself as a prospec-

tive new tenant.

Anchor tenants. These are the

major businesses/retailers which

pull customer traffic to a property.

Typically, they are major grocery or

department stores; however, this is

not always the case. Consider the

stability of those anchors. How long

have they remained in the property?

Are they planning to remain or to

move? We remember how many

tenants leasing in a small shopping

plaza were caught off-guard when

the major grocery store anchor

moved out. Major grocery chains

frequently continue to pay rent on

a vacant commercial space to avoid

having a competitor move in.

Competition. Before you commit to

leasing a location, scout the neigh-

bourhood to see if you have any

nearby competitors. Become acutely

aware of your competitor’s services,

products, and pricing. One easy and

effective way to do this is by means

of a secret shopper. Ask your secret

shopper to visit your competitor(s),

report back on their experience, and

quiz them about your business (if

you are already open) and whether

they are badmouthing you to their

customers. Do not just evaluate your

current competition, but also con-

sider future competitors who may

move in to the area. Franchisors, for

example, may be exploring oppor-

tunities, and may have a competing

franchisee move in just down the

street from you. You can contact

franchisors to see if they are plan-

ning to come to your city or town.

As The Lease Coach since 1993,

we have helped many new and exist-

ing franchise tenants negotiate first-

time leases and lease renewals, as

well as choose the most appropri-

ate business location. A good busi-

ness in a poor location ultimately

becomes a poor business.

What are some of the most important factors to consider as I look to select

my franchise location?

ASK A LEASING EXPERT

A

Dale Willerton and Jeff Grandfield

Commercial Lease Consultants

The Lease Coach

1-800-738-9202

[email protected]

[email protected]