CASE STUDY: How a Sydney based beauty business secured their first location on the best terms, saving thousands.

We were recently approached by a beauty industry business owner with an objective of opening five stores within the next two years. She was looking for assistance in locating appropriate retail tenancies to choose from and negotiating the best possible outcome with regard to her retail lease.

What an exciting project to roll out!  For the first location, we were successful in finding and securing a great site, as well as negotiating an outstanding result, saving in excess of $320,000 over the course of the five year lease term.  Continue to read on and find out how we achieved this result …

Understand the Clients Needs and Strategic Objectives

We spent some focussed time discussing the specific business requirements of the ideal shop location and developed a detailed understanding of the strategic objectives for the business.

With the experience of having completed over 1,000 lease negotiations for all types of retail businesses, we are able to offer practical scenarios for business owners to consider, when aligning their expectations for business performance and the optimal location ultimately selected, along with the minimum requirements for a new lease.

On and Off Market Searching

We leveraged our extensive network of “off market” industry contacts, as well as market based information, to build a database of prospective tenancy opportunities, that were in alignment with the clients property needs.

Our team searched the market, evaluating various factors such as location, foot traffic, demographics and market trends to ensure the short listed properties aligned with our client’s needs.

Initial Site Inspections: Precision and Insight

We streamlined the process by undertaking the initial site inspections, documented our findings and recorded detailed videos of each inspection. We then provided our client with a comprehensive overview of each property, enabling them to make an informed decision, without the need for a physical visit of each one.

Review the Shortlist

After conducting thorough inspections and considering the brief and needs assessment, our team performed a review of all available options. Considering our client’s preferences and requirements, we presented the shortlist of qualified properties that best matched their needs. This approach involved our client at every step, as we guided them through the feedback and decision making process.

The Final Decision

Our client then chose three properties to review and we accompanied them on the final site inspections. This saved our client a lot of time and provided an opportunity for further discussion, feedback and a deeper understanding of the properties under consideration.  Our client was able to make a confident decision on which tenancy to select first.

Negotiation: Securing the Best Possible Terms

Once the preferred location was selected, we stepped into the position of the Tenant for the negotiation process, leveraging our expertise and industry relationships. One of the strengths of using a Tenant Representative is that the Landlords advantage of superior information and power in the negotiation process is eliminated.

Utilising the market information available and the research on the asset, we were able to negotiate favourable lease terms, leading to substantial savings as well as non-monetary preferential terms.

$320,000 in Savings Were Negotiated:

  • Significant Rent Savings of over $40,000 per year
  • Lower Marketing Contributions
  • A Generous Fitout Contribution
  • Reduced Turnover Rent obligations
  • Reduced Security requirements

These collectively resulted in not just substantial financial gains, but also guaranteed the client the optimal lease for their business.

The Tenant Representative / Tenant Partnership

Through our comprehensive leasing services, we empowered our client to secure their first store with outstanding success, that they would not have been able to achieve on their own. Our team delivered exceptional results, resulting in savings of over $320,000 on their five year lease term.

We take pride in our client focused approach, working closely with each business to understand their unique objectives and tailor our services accordingly.

At Your Leasing Co we are committed to helping businesses thrive by providing expert guidance throughout the entire leasing process. With our market knowledge, negotiation experience of over 1,000 deals and dedication to achieving exceptional outcomes, we look forward to assisting more clients in their journey to negotiating outstanding leasing outcomes.

If you have any questions about negotiating the best outcome for your next Lease, please call us for a free, no obligation conversation on 1300 356 702.

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