Clark Howard's Tips
Retail vacancies mean opportunity for entrepreneursAugust 4, 2008
A few weeks ago, Clark explained why a recession is the best time to start a business. Need more proof? Read on.
Have you noticed vacant storefronts as you drive around? The International Council of Shopping Centers now reports the largest historical increase in vacancies. 1 out of every 7 retail spaces in the United States will vacate this year. That creates great opportunity if you want to open a retail location or a restaurant. Landlords need you! And you're in a powerful negotiating position.
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CLARK'S TIP TOPICS
Find more consumer advice in Clark Howard's book, "Get Clark Smart" |
If you have an existing business and your lease is coming up for renewal, once again, you have so much negotiating power. But you must be willing to relocate to a shopping center across the street if need be.
And here's a special warning for entrepreneurs: Make sure you get a kick-out clause in your lease. That will protect you should the anchor retailer vacate from a shopping center. Anchor retailers could be a supermarket, a Target, a Wal-Mart or what have you. If they leave, all the ancillary businesses die as traffic drops off. So a kick-out clause allows you to vacate if the big fish goes elsewhere.
Are you facing a penalty for a kick-out clause? Negotiate a lesser penalty. You've got the upper hand.
