When you have a vacancy or premises to lease in a commercial or retail property, it can be a challenge to find a tenant. To a great degree the sourcing of tenants to lease premises is an ongoing task and that is why some commercial property agents specialise in leasing only. Leasing is such a special process that can have major impact on the property overall for some years to come.
Top leasing agents are always on the lookout for tenants that are nearing lease expiry or requiring expansion or change of premises. To simplify matters somewhat, the leasing of vacant premises to franchise tenants can be a good outcome for a landlord. Here is why:
• The franchise system supports the operation of the business and helps the operator of the business with growing market share. • The franchise system and model is already proven in other locations, so the tenant to the premises will not be an ‘experiment’ in success or cash flow. • A franchise business will bring a standard brand and well recognised logo to the property that can have a positive impact on the balance of the tenant mix • The lease for the franchise business will have structure and design to help the tenant succeed in the location • The franchise group will have done their ‘homework’ when it comes to locating into the premises and will understand that the potential business and custom exists in the local demographic.
The landlord for a property needs to have some flexibility when working with a franchise group to arrange the leasing of premises. The franchise agreement is part of the business model for the incoming tenant; the franchise agreement will need to integrate with the time frame and terms and conditions of the lease between the parties.
So as you can see, the lease to be used with franchise groups will be quite special. The landlord for the property should be open and flexible when working with a lease from a franchise group.
It is not unusual for franchise tenants to give their lease to a landlord for consideration. That being the case, the landlord can get their solicitor to oversee the document terms and conditions.
If you are on the ‘hunt’ for new tenants now, check out all of the franchise groups both locally and regionally; it is likely that one or more of them are looking to grow their market share. If your property and the vacant area can offer them a good location and a reasonable potential expansion of their business presence, then you are likely to get a lease offer together.
So how do you approach these franchise groups? You identify them and make a telephone call to speak to their ‘lease acquisition’ negotiator. Ask them about what they need by way of a new location and provide details of your property.