Every business owner considering leasehold improvements should have a checklist of to-dos, but here are a few retail store leasehold improvement tips you may not have considered yet.
Retail franchises are a popular and growing sector of the economy. As such, the competition can be fierce, and every detail counts, especially when it comes to leasehold improvements. Here are five things you may not have considered when planning your retail store leasehold improvements.
Who’s paying?
It is essential to determine who is paying for the leasehold improvements. You need to negotiate this during lease negotiations with the landlord. Often, landlords provide a leasehold improvement allowance for their tenants, but it is typically only a set amount. If the improvements you want cost more than the allowance, you will be responsible for the extra costs. Make sure to obtain landlord consent and that the lease allows for your planned work and future renovations. Renovation plans are often included as an addendum to the lease.
Check your specs
Make sure the building can structurally support your renovations and any machinery you want to install. Are the electrical systems sufficient? Is the warehouse dock adequate? You don’t want to spend a significant amount of money on improvements only to find out later that the building can’t support them.
New isn’t always the best option
Think carefully before signing a lease for a new build. They can require basic work, such as electrical wiring, plumbing, and drywalling, before you even consider furniture, lighting, and painting costs, among others.
You can’t take it with you
Leasehold improvements can’t usually be taken with you unless they are movable, such as furniture. It’s wise to keep costs low and preserve your cash for other things, even if you have a big budget for your space. During lease negotiations, make sure the lease or addendum to the lease clearly states which assets you can take with you if you move out of the building, and which are considered part of the building.
Engage skilled experts
Obtain quotes for the renovations from reputable contractors who have done similar work and have a track record of finishing jobs on time. Check their references. With your contractor, assess your renovation needs and obtain any necessary permits well before moving day.
In conclusion, retail franchise renovations can be a significant investment, and it’s essential to plan for every detail. Make sure you negotiate the payment of leasehold improvements with your landlord, check the building’s specs, think carefully before signing a lease for a new build, understand what assets you can take with you, and engage skilled experts. By considering these five things, you’ll be well on your way to a successful renovation.
If you’re ready to sign a lease and undertake some leasehold improvements, we are experts in all areas of industrial & commercial contracting throughout Ontario, and pride ourselves on our versatility. Give us a call at 647.965.5459 to discuss your upcoming or contact us to speak to an expert.