“A lot of leases as they are written today have escalations in them. Sometimes escalations are on the rent or an extra charge. They are tied to cost of living. You should cap the increases at the lowest percentage as it can go up a lot. Control the increases as much as possible.
“If you’re negotiating a lease of more than five years, always negotiate options. After five years, you have an option to renew for a certain period of time at a certain rent. You ALWAYS want that. This gives you the option to renegotiate your lease every time renewal comes up.
“NEVER sign a lease personally. Sign with your corporation. You don’t want your own assets tied up. If you MUST, do not sign for any longer than a year or two.”
ST: Has the recession opened up opportunities for owners looking for space?
Mancino: “Anyone who has a lease coming up in the next 18 months should explore opportunities to relocate. They will nd some landlords are very receptive to structure a really good deal for someone who has been in business for a long time. And this creates leverage with their existing landlords. One thing about salons: They generate the majority of their own traffic. So if your leasing situation isn’t extremely favorable, you should look for other solutions. This applies even if you are leasing an office building or a retail store. For anyone who’s looking to sign a commercial lease (retail, office, salon, etc.), they should have someone who is knowledgeable on the real estate side.”
For more information call Western Reserve Advisors at 330-533-8798.