DAYSPA is the business resource for spa & wellness professionals! Each issue covers the latest in skin care, spa treatments, wellness services and management strategies.
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dayspamagazine.com • december 2017 • [ 61 ] Waiting too long before you initiate the renewal process. According to Willerton, if you don't think about real estate until the new lease hits your mailbox, it's already too late. "A tenant needs to be proactive, and that means starting 12 or even 18 months in advance," he says. "If you're going to get bad news about a rent increase, you want it as soon as possible." Some property managers deliberately wait to send renewals until it's too late for the tenant to do anything but accept the proposed hike. Starting early puts you in control of the timetable, and lets your landlord know you're serious about negotiating—and ready to go elsewhere if you don't get a better deal. It also gives you time to research other options and, if needed, get the ball rolling on a new space. Advance planning will also enable you to make the best use of any rent-free months you're able to negotiate, and minimize the disruption to your clientele and cash fl ow. Neglecting to do your homework on costs and competitors. Would you renew if you knew that the supermarket anchor tenant in your shopping center planned to close? What are the other tenants paying? What is the market rate? Where is growth projected to happen in your community? Is there a big national franchise day spa opening just down the road? Your landlord likely knows these things, but if you don't ask, they're not obliged to tell you. You don't need to be a master sleuth or business genius to fi nd the answers. Check the websites of your community's planning agency and economic development authority to see any plans in the pipeline. LoopNet, Cityfeet and other commercial real estate sites show what's on the market. This information gives you more leverage. A property manager does these deals all the time; they have experience and knowledge that you probably don't. It's not against the law for your landlord to overcharge you, so it's your responsibility to make the best deal or hire an expert to help you do so. If you fi nd you're paying much more per square foot than other tenants in your center, you have the right to make a counteroff er, ask for other incentives to compensate, call a leasing consultant or attorney to help you, or walk away. The time to take action is before the lease is signed. Whenever O'Connor ponders a move, rather than hiring a leasing consultant, she stays hands-on throughout the process. The spa pro makes sure to scout locations herself, communicates directly with potential landlords and uses a lawyer to review the necessary paperwork. Your homework also includes understanding your own business. If your rent is going up but you're inclined to stay, how can you off set the extra cost? Can you squeeze more revenue- generating services into the same square footage, for example— and ask your landlord to cover the remodeling costs? © GETTY IMAGES