Leasing for Your Organic Business:

So you're ready to take your business to the storefront. Okay, great! Congrats, let's do it!

Retail leasing has worked, continues to and is likely to expand outside forecasted limits, especially with all the traffic in Tampa Bay. This is a reasonable and achievable goal.

With that, you may be new to the area, or braved your dream during the pandemic's height and started a new business. You surpassed all your imaginations and it just makes sense to take it to the next progression. You need a building. But you need to be fiscally responsible, and stick to a realistic, if not tight budget.

After the shut down so many things were closed, deliveries were up and now the market, although unpredictable, in Commercial must have a couple of good opportunities for Tenants, right? You may think that there's a frugal market, with all those empty vacancies, right? Well, not necessarily.

Competition and availability hasn't been more fierce than it is now. Tampa Bay isn't only a great place to live and play we were voted number ten (10) by Wallet Hub for the Best Large City to Start a Business within the US in '2022.

https://wallethub.com/edu/best-cities-to-start-a-business/2281 . You've got to be strategic if here's where you plan to build and stay.

There are many variables to leasing a space as a Business Owner in Tampa Bay's Hillsborough, Pasco and Pinellas, Citrus, Hernando, Manatee, Polk, and Lake Counties. They aren't necessarily cut and dry either. If a business is brand new, expanding or even relocating to the Tampa Bay Area, the owners and partners will need to consider these points.

Leasing involves many pre-qualifications that the Property Management Company or Direct Landlord will be looking for.

The obvious will be, can the tenant afford the rent?

But the more important question, in this proverbial new-normal-way-of doing-business is, "Can the Tenant pay the Rent over the next three (3) years as a bare minimum? Do they understand they'll be the Guarantee and responsible for the lease, pandemic or apocalypses?"

Many Landlords want minimum five (5) and seven (7) year leases. Sticker-shock may be met with a ten (10) year lease. Landlords are protecting themselves and circumventing empty spaces by different measures.

Next question, usually, if the Tenant can fulfill that minimum, then, "can they prove it?"

Here's another point to note that many business owners don't consider, as they're hunting for their locales. Not all that different than in residential, just because a space is available isn't a guarantee that the candidate seeking the lease will secure it either. Here too, it doesn't matter if you have the ability to pay. Many times the owner will want to know, what kind of traffic the potential tenant will promote to their locale? For example, Mr. Landlord could be looking for clientele that's Executive Level Clientele solely. As marginal as this may sound, if it's the Landlord's criteria, that's the client that will win the lease. If that criteria isn't met (sometimes it's not even disclosed) then the tenancy won't occur.

With so many companies being established in the last two years, Florida's Division of Corporations, reported that, "in 2021 'Domestic for Profit Business, ' filings totaled, 104,625." ?So, you take No. 10 Best location, probably more than a handful in Tampa Bay that need brick-and-mortar locales now, the proverbial pickings will be slim.

It may be helpful to work from a checklist. Especially a new business that may have never experienced a business lease. It may be a very positive tool for a realistic search.

That's obvious, you may state, why would she even write that in an article? Experience is surely your greatest teacher. Where I overdeliver and under promise, my Residential Realtor Colleagues have honored me with many a referral. They share that I'm a CRE Realtor and I'll find then a location. Unfortunately, I have received many a referral that have been uninformed.

I am compassionate in educating but want to eliminate the frustration that these referees experience when they'd like to secure a location for their business - quickly. An example that comes to mind is that of a very well-intentioned colleague in my brokerage referring a transplant from the East Coast to me. This referee wanted to lease a property of less than 800 SF in a very Affluent Area of Hillsborough County for a nominal rate that was HIGHLY UNREALISTIC for the area they wanted. The potential tenant did not have a business name, EIN nor bank account in that entity's name. The referee had over $75K in their private banking account and shared how I was being unhelpful in asking these questions.

Our Industry Leaders almost always share that Commercial Real Estate isn't for the faint of heart nor easy. Affirmative. Yes, that doesn't deter me. I love CRE and at the end of the day, I'm contributing to a part of the client's stamp to secure a Legacy.

Going into Q3' 2022 I'm going out on a limb to share this article. I hope it will help someone. So, you want to go lease in Tampa Bay. These pointers may be the way. I have a couple of pointers in a checklist.

The MUST HAVEs checklist that I recommend is as follows:

• Registered Name of Business should be in the State of Florida. If there's a Registered ? Trademark ? then declare that too.
• Share the Entity Type, which likely was established when the EIN was acquired.
• The EIN, Employee Identification Number should match your current business' name and/or DBA for where the business location will assume the lease. Any questions on creating an EIN or verifying entity type, I would recommend to visit this IRS site: https://irs.taxid-usa.com/?keyword=ein%20application%20form&source=Google&adAccount=460-350-8849_SL&network=g&device=c&devicemodel=&mobile=&campaign={Campaign}&matchType=e&gclid=Cj0KCQjwpcOTBhCZARIsAEAYLuVKcavxHUroHdvTjYEXQn236SC3H6HL9TbnwGXqaD85m7MsIzPAerAaAlqqEALw_wcB
• Be ready with an Executive Summary and/or Business Plan. Either should narrate goals, targets and benchmarks for five (5), seven (7), ten (10), twenty (20) and even twenty-five (25) year goals.
• Proof of Funds should be Solely from the Business' Checking Account, Annual Tax Returns, Microsoft Excel Friendly Software Programs, for example, Quickbooks, NetSuite, FreshBooks or old-fashioned Profit and Loss Ledgers. Whatever the documentation it should demonstrate scalable sales at an Increase. That increase should remain in the black and trending upward rather than down Flat is certainly better than down if in the black. Trending towards the red? If there are any Decreases there should be an explanation letter that may accompany your application for Tenant-Occupancy. Sharing this with the Letter of Intent, LOI, may answer what will likely be an unspoken question.
• Ask questions about your competition. Know if another business is being considered for the space that you've fallen in love with. Negotiating this may take a skilled Realtor, however, if you wing this on your own, you may want to ask about industry considerations such as:

1. Tenant Improvements (T.I)
2. Rent Abatement
3. Fixed Rate for PSF Final Year
4. What the Tax Rate is for the County to Which You'll be Renting
5. Total Deposit - First Month Rent, Year One that may or may not include Taxes, Equivalent Deposit of First Month Rent and Final Month Rent that may have a 7% Escalation for the Fifth Year of Occupancy

If you're looking, be patient, strategic and not so linear in your goals. This Realtor's experience, can state, that what appeals to the eye may take some time to navigate. Turn key is great, but it just may be a little messy.

As humbling and rewarding an experience that it is to receive a referral, I'm still gobsmacked when, as a professional, you're sharing market protocols and professional acumen with clients and they demean and lash out at you when they didn't do their homework and are evasive to recommendations.

This Article is an ode' to the town that I love and have called home since '1999. I've seen it expand and grow and there's incredible discovery still to be had here.

I serve this community and am not just looking for the next client's commission.

I'm looking for the sticks, bricks, mortar, sweat and toil that made for example, that doctor's office the go to clinic that dominates the industry. That hairstylist or barbershop securing a locale that provides them with a non-compete because they have increased positive traffic to a neighborhood. The drive-thru floral shop that was a, "ridiculous ideal," that now the small neighborhood can't do without.

When I receive a referral it's not about just hurry up and find it, I dive down into the core to work with my clients in establishing pillars for their success.

Organic businesses and expanding ones, we have a responsibility as Realtors to meet your needs.

If a referring Residential Agent has not asked some of the basic questions I mentioned, as tips for a checklist, they should want to get you to a CRE that will. And, if they do not, I would question if they wanted your success or just your commissionable win from referring you?

I get paid zero, zilch, nada for this article, but I care and I'm willing to take a dare just to pay it forward in doing business here in Tampa Bay.

Continued success and thanks for support with this read!