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beautystorebusiness.com | August 2015 89 Kahan, first vice president at the Chicago office of CBRE (cbre.com), a Los Angeles- based commercial real estate company. "Investigate your local market and find out what other retailers are paying in your area." That means talking not only with real estate agents but also other retailers— especially those with property from the same landlord. They can tell you a lot more than just what they are paying. "Some of your fellow tenants will have recently gone through the renewal pro- cess," says Willerton. "They can give you some valuable insights into how your landlord negotiates." And there's more: Your neighboring retailers can alert you to relocation plans of their own. That can be a major fac- tor when it comes to the desirability of your current location. "If you assume everyone else will be there after you renew, you might be wrong," says Wil- lerton. "You can lose four neighbors and get four new ones in a five-year cycle. Knowing someone is moving can make a difference in terms of your decision to stay or move." You may also find out some surprising things. Maybe the landlord is planning to reconfigure the space surrounding your store, or maybe an adjacent tenant with more bucks wants to expand—in your direction. "You want to find out such things in advance," says Willerton. YOU GO FIRST Successful retailers take the initiative when it comes to lease-renewal negotia- tions. "Most tenants think the landlord is going to come to them and remind them in a timely manner that their lease is expiring," says Willerton. "But most landlords will not do that. That's because they want the clock to tick right down to where they have you over a bar- rel." Suppose only four weeks remain before expiration? What can you do if the renewal terms are onerous? There's no time to move or negotiate. "Be proac- tive. Don't lose your time advantage," notes Wilerton. Speaking up early is great, but don't tip your hand. "Too many times tenants say the wrong thing," says Willerton. "Suppose you see the property manager in the parking lot and you casually remind him that your lease will be expiring and you want to do some major renovations and look forward to five more years. You have just given the Get It in Writing Avoid relying on oral promises when negotiating your lease renewal. They can evaporate like clouds on a summer day. Consider this scenario: "Eight months before your lease expires you have a conversation with your property manager," says Dale Willerton (theleasecoach.com,) a Los Angeles-based tenant lease consultant and author of Negotiating Commercial Leases and Renewals for Dummies. "The manager says something like this: 'We will have to raise your rent by about 5%. But don't worry about it—we will get to it in a few months.' Later, two months before your lease expires you get hit with a 50% increase. What does the property manager say? 'Yeah, I was surprised too.'" Here's a similar scenario from Willerton: "Suppose that eight months before your lease is up the property manager sends you a renewal proposal with some attractive terms. You say 'That's not so bad; I'll sign it.' A few months later you get the actual lease from the landlord with far more onerous terms. What does the property manager say? 'I didn't know they were going to do that to you.'" Both scenarios can happen even if you have a great relationship with the property manager, warns Willerton: "Landlords often give leasing people and property managers 'plausible deniability' by not telling them of future plans. Remember that nothing counts until it is in writing and signed by the landlord." Salon proven, two part formula cuts down blow dry time for faster, stress-free styling while light conditioners provide silky smooth, frizz-free hair all day long! ™ 6 Piece Counter Display Cuts Blow Dry Time in Half! w u t s B l o w T i m e ! For more details or for a distributor near you visit six9haircare.com or call 800 555-8895.