In order to be a great Tenant keep these 10 things in mind. We all know human nature is this: As soon as you decide to open your retail store or purchase a franchise the first thing to do – and the only thing you really can do – is drive around and call all the numbers on all the signs in all the windows. WHOA there! Cool your jets turbo! You need a strategy, a plan of action.
Ready, Shoot, Aim, gets really expensive and just won’t work in the long term. If you look at the great tenants out there like WalMart, Kroger, AutoZone, they all have teams of professionals and experts. Sure, most of their people are employees, but you can get the same expertise without a real estate department. You will need a team and this list will get you headed in the right direction.
Top 10 Steps to Being a Great Tenant
1. Determine if you should even be in business. Look, not everyone is cut out to run a business. Don’t call the sign in the window and ask them what type of business would be good there.
2. Understand your concept. Know your customer profile (hint, it’s not just anyone with a buck in their pocket).
3. Research your competitors. Who does this now? Sell burgers? What does McDonald’s do?
4. What do you really need? How large is your space, where, who would be a good neighboring Tenant (where else does my customer shop)? Do you need a warehouse, patio, or drive through? What special zoning do you need? Alcohol sales? Health Department Permit? Sprinklers? Impact Fees?
5. Hire a Broker – more on this Here, Here and Here.
6. Ask Questions – require the your team to explain their specialty until you understand it well enough to spend your money on them.
7. Be Coachable. Understand that your team is there to help you make the best decisions possible. Engage them, open a dialogue and open your mind to the reality of the situation. Because you can afford a $10.00 rent doesn’t mean that is the market.
8. Consistent. Create a Strategy with your Team, and execute it to the best of your ability.
9. Prepare your financial statement in advance. Without exception this will be required at some point in the process.
10. Be Decisive. Make a decision, and feel confident that the team you’re working with helped you make that perfect decision.
Just because you haven’t heard from your broker in the last 2 hours, or over the weekend, does not mean they are not working for you. Be very candid and specific when you discuss your needs. If you don’t communicate your needs effectively, how can your team possibly meet them?
Being a Great Tenant, just like operating a business takes effort.
Original Source: John Orr, CCIM Blog
Photo Credit: “Cartoon Businessman With Checklist Paper” by iosphere Source: freedigitalphotos.net
