Jerry recently lent his expertise to a piece in the MBJ that addressed some actions business owners need to take when it comes to financing and leases. Here's his take:
Financing a business these days is complicated business,
particularly for rank beginners looking to step into their first retail space,
many of whom may have done insufficient legwork in advance of applying.
Attorney
Jerry Slusky of Smith Gardner and Slusky also stressed the importance of such
details, calling the lease, “the heart of a real estate transaction.”
He said issues of property usage, square
footage, lease assignment and price just scratch the surface of the process. He
called the term of the lease particularly critical. “For a small tenant
particularly, having as much time in the lease as you can get is important,” he
said. “Most of these small tenant leases are five years—sometimes the landlord
will push for 10 years—so the obvious choice is a five year lease with a five
year option. That gives the tenant the ability to move forward after five years
or not based upon the success or lack of success of his business.”
Slusky also said many first-timers are afraid
to negotiate or even ask questions about a lease’s stipulations. He said
prospective tenants should view everything with a cautious eye, willing to
challenge everything about a space from square footage to condition.
“Negotiating the rent in today’s world is
quite interesting,” he said. “Some for the lesser centers are not as well
occupied and getting somewhere between $8 and $15 a square foot while the
better centers are getting $15 to $30 a square foot. It’s very important small
tenants understand the market and what the competitions is.” Slusky said
assembling a team of outside experts for assistance is “better than a good
idea, it’s mandatory.”