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FREQUENTLY ASKED QUESTIONS Q: Why should a landlord sign an exclusive marketing agreement with a broker? A: A landlord needs an experienced broker to negotiate in situations like Use clauses and Exclusive Use clauses that could hinder a landlord’s right to other preferred uses in the project. Also, by hiring a broker, a landlord will minimize loss of rent by exposing the project to a much higher number of prospective tenants.
Q: When should I use a real estate broker to market my real estate? A: Ask the advice of an experienced broker when you start planning a development. Up-to-date knowledge of current market conditions will help you build the appropriate space to meet market demands.
Q: How often should my broker give me written marketing reports? A: Depending on the size of the project, many brokers provide written reports once per month. However, a broker should be spending time finding tenants or buyers rather than preparing written reports. So frequent verbal contact makes better use of their time.
Q: As a tenant, what do I need to bring to my first meeting with the landlord or landlord’s broker? A: You will need to bring a copy of your most current financial statement or a balance sheet showing all of assets and liabilities for each party signing as a tenant. You should also bring any information about your current or proposed business. Interior photographs of your existing business or catalogue pictures are also important to show the landlord what your plans are for the space. If it is a new business, you should bring a business plan and information about your business experience.
Q: How long a lease do I need to sign? A: Typical retail leases run between five years and 15 years, often with an option to renew for an additional five years.
Q: Will I have a grace period before I have to start paying rent? A: Landlords understand that retail tenants need time to get city permits for improvements. Typically restaurants and other uses that require more remodeling will receive more time than a retail store. However, landlords often grant from thirty to one hundred and twenty days rent-free.
Q: What problems can I run into at the beginning of a lease? A: The most common issues between landlords and tenants usually involve tenant improvements. That’s why it’s important for you, as a tenant, to have an experienced and licensed contractor and architect to build out improvements and get the necessary governmental permits. In the long run, it will save both time and money.
Q: What’s the next thing I need to do after signing a lease? A: You will need to provide the following information for the landlord’s approval:
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