Entrepreneurs always underestimate the role that real estate plays in the success or failure of their small business. I've learned a lot over the years as a real estate entrepreneur that applies to any business owner. Here are my tips for entrepreneurs looking to rent an office, retail space, or even a restaurant.
1. Rent on the right side of the street. There's always a right and a wrong side of every street, and before you rent your retail space, stand out front and count how many people walk by the door. Every main street in America has double the foot traffic on one side over the other, which translates to more customers walking in your door and making a purchase. Always rent the space on the right side of the street.
2. Opt for a longer lease. For a young business, renting space for two whole years sounds like a heck of a long time but it goes by too quickly. If instead you're brave enough to sign a longer lease for four to six years, your largest overhead cost is locked in, and that puts your business on a secure foundation. It even pays to give your landlord pre-set incremental rent increases within the terms of the lease because it costs you less in the long run. If you think you might want to unload the space later, ask the landlord for the right to sublet. Most landlords readily give that option if you're willing to sign a longer lease.
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