--- title: "Retail Leasing: 3 Factors to Keep in Mind" description: Retail leasing can be a smart choice, especially for new businesses. When leasing space, pay most attention to the location, budget and contract. image: https://blog.sdnyrealty.com/hubfs/ThinkstockPhotos-135877702.jpg --- - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Forms](https://sdnyrealty.com/forms/) -   [![S&D Commercial Real Estate Agency](https://blog.sdnyrealty.com/hs-fs/hubfs/S__D_Real_Estate_January2019/images/sd-original-logo_300px.png?width=300&height=194&name=sd-original-logo_300px.png "S&D Commercial Real Estate Agency")](https://sdnyrealty.com/) - [About](https://sdnyrealty.com/long-island-commercial-real-estate-firm/) - [Agents](https://sdnyrealty.com/long-island-real-estate-agents/) - [Listings](https://sdnyrealty.com/property-listings/) - [Property Management](https://sdnyrealty.com/property-management-company/) - [Resources](https://sdnyrealty.com/real-estate-resources/) - [Neighborhood Guide](https://sdnyrealty.com/neighborhood-guide/) - [Long Island](https://sdnyrealty.com/long-island-commercial-real-estate/) - [Nassau County](https://sdnyrealty.com/nassau-county-commercial-real-estate/) - [Bethpage](https://sdnyrealty.com/bethpage-commercial-real-estate/) - [Farmingdale](https://sdnyrealty.com/farmingdale-commercial-real-estate/) - [Franklin Square](https://sdnyrealty.com/franklin-square-commercial-real-estate/) - [Garden City](https://sdnyrealty.com/garden-city-commercial-real-estate/) - [Glen Cove](https://sdnyrealty.com/glen-cove-commercial-real-estate/) - [Hempstead](https://sdnyrealty.com/hempstead-commercial-real-estate/) - [Hicksville](https://sdnyrealty.com/hicksville-commercial-real-estate/) - [Long Beach](https://sdnyrealty.com/long-beach-commercial-real-estate/) - [Mineola](https://sdnyrealty.com/mineola-commercial-real-estate/) - [Rockville Centre](https://sdnyrealty.com/rockville-centre-commercial-real-estate/) - [Suffolk County](https://sdnyrealty.com/suffolk-county-commercial-real-estate/) - [Babylon](https://sdnyrealty.com/suffolk-county-commercial-real-estate/babylon-commercial-real-estate/) - [Brookhaven](https://sdnyrealty.com/brookhaven-commercial-real-estate/) - [Hauppauge](https://sdnyrealty.com/hauppauge-commercial-real-estate/) - [Huntington](https://sdnyrealty.com/huntington-commercial-real-estate/) - [Islip](https://sdnyrealty.com/islip-commercial-real-estate/) - [Melville](https://sdnyrealty.com/melville-commercial-real-estate/) - [Riverhead](https://sdnyrealty.com/riverhead-commercial-real-estate/) - [Smithtown](https://sdnyrealty.com/smithtown-commercial-real-estate/) - [Southampton](https://sdnyrealty.com/southampton-commercial-real-estate/) - [Consulting Services](https://sdnyrealty.com/consulting-services/) - [Property Appraisal Services](https://sdnyrealty.com/property-appraisal/) - [Zoning Regulations](https://sdnyrealty.com/zoning-regulations/) - [Forms](https://sdnyrealty.com/forms/) - [Veterans & Military Housing](https://sdnyrealty.com/veterans-military-housing/) - [Join our Program](https://sdnyrealty.com/veterans-military-housing/#apply-now) - [Forms & Applications](https://sdnyrealty.com/forms/) - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Blog](https://blog.sdnyrealty.com/blog) - [Contact](https://sdnyrealty.com/contact/) # Retail Leasing: 3 Factors to Keep in Mind - March 17, 2016 - [leasing tips](https://blog.sdnyrealty.com/blog/topic/leasing-tips), [commercial real estate](https://blog.sdnyrealty.com/blog/topic/commercial-real-estate), [retail leasing](https://blog.sdnyrealty.com/blog/topic/retail-leasing) - 0 ![Retail Leasing: 3 Factors to Keep in Mind](https://blog.sdnyrealty.com/hubfs/ThinkstockPhotos-135877702.jpg)  Retail leasing can be a smart choice, especially when you're just starting out in business. However, finding the perfect store can be daunting as there are many factors to consider. Here are three factors to keep in mind when looking for a retail space in the [Long Island](http://sdnyrealty.com/long-island-commercial-real-estate/) area. ## 1. Location Selecting the right location for your retail space is crucial to the success of your business. If your customers are based in a defined geographical area, choose a location where they can easily find you. Selecting a location outside of this area means you'll have to spend more on marketing. If your business depends on passing traffic, find a location that's visible and easily accessible by public transport. You may also wish to consider choosing a location near to similar retailers. This can be especially invaluable if you don't have an established customer base. ## 2. Budget![retail leasing](https://blog.sdnyrealty.com/hs-fs/hubfs/retail_leasing_2.jpg?width=345&name=retail_leasing_2.jpg "retail leasing") Knowing your budget will help you to narrow down your options and avoid [choosing a retail space](http://fitsmallbusiness.com/lease-retail-space/) that's out of your price range. When reviewing your budget, look closely at your anticipated income and expenditure. Predicting sales can be difficult, but customer demographics can help. Once you've established your budget, you'll need to consider the financial commitments beyond your periodical retail leasing payments. These may include fitting-out costs, property taxes and insurance. Factors that can affect these costs include the type, size, condition and location of the retail space. ## 3. Contract Understanding the terms of a lease contract is key to avoiding costly disputes. There are three types of leases: percentage leases, where you pay a base rent plus a percentage of your sales; net leases, where you pay a base rent plus expenses such as property taxes, utilities and maintenance; and gross leases, where you pay a base rent inclusive of some or all of your expenses. Make sure you read the lease agreement carefully so that you know which type of lease you're taking out. ## Other Retail Leasing Considerations Leases typically have terms of between one and five years. If your business is new, consider a short-term lease with the option to renew. You may also wish to look for a subletting clause that allows you to lease the store to another retailer if your business fails or relocates, and an exclusivity clause that prevents your lessor from leasing any other spaces on their premises to your competitors. If your business needs it, make sure your lease allows for property modifications and signage installations. [Choosing a retail leasing space](https://blog.sdnyrealty.com/blog/real-estate-checklist/) can be a difficult task. By taking into account all the relevant factors, you can find a property that meets the needs of your business. 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That’s why, if... [Continue reading](https://blog.sdnyrealty.com/blog/commercial-real-estate-agent) [![How to Find the Right Real Estate Deal for your Business](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Real%20Estate%20Deal.jpg?width=768&name=Real%20Estate%20Deal.jpg)](https://blog.sdnyrealty.com/blog/real-estate-deal) - January 10, 2018 - [Buying](https://blog.sdnyrealty.com/blog/topic/buying), [small business](https://blog.sdnyrealty.com/blog/topic/small-business), [office](https://blog.sdnyrealty.com/blog/topic/office), [commercial property](https://blog.sdnyrealty.com/blog/topic/commercial-property), [commercial real estate](https://blog.sdnyrealty.com/blog/topic/commercial-real-estate) ### How to Find the Right Real Estate Deal for your Business When it comes to the commercial real estate market, it isn’t always easy to find the right property for your company. It’s hard to prioritize... [Continue reading](https://blog.sdnyrealty.com/blog/real-estate-deal) [![How to Approach and Win your Next Lease Renewal Negotiation](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Lease%20Renewal.jpg?width=768&name=Lease%20Renewal.jpg)](https://blog.sdnyrealty.com/blog/lease-renewal) - October 18, 2017 - [leasing tips](https://blog.sdnyrealty.com/blog/topic/leasing-tips), [Renting](https://blog.sdnyrealty.com/blog/topic/renting), [Leasing Apartments](https://blog.sdnyrealty.com/blog/topic/leasing-apartments), [rental property](https://blog.sdnyrealty.com/blog/topic/rental-property) ### How to Approach and Win your Next Lease Renewal Negotiation As your lease comes to an end, you must decide whether or not you’re going to renew for a longer period of time. If you’re like most renters, that... 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