Renting Commercial Space

My friend just moved her children's store last year. The owner was originally going to just lease the space to her as is. She negotiated with him to install a lowered ceiling which cut the electric bill in half. He also painted and recarpeted it. Plus, she put it in the lease he had 2 months to fill the HUGE pothole where customers parked. He did everything because he needed the rent and she would keep renewing the lease as long as the building was maintained.

Her previous landlord had inadequate parking. She didn't know it until someone bought the two houses on either side of her and made them into restaurants. Her customers parking was taken up every day by others.
This caused her to almost go out of business. The tenant there now had to install a metal fence around the parking lot to stop people from parking there. It cost him thousands of dollars, but otherwise he had no parking and he signed a two-year lease.

If you can, ask for the previous two renter's as references. Or ask the neighboring businesses. They will usually warn you if a problem exists.
Location, location, location. And then parking, parking, parking. :-)

Is this a children's boutique? If so, I would check out other stores that are carrying the same things. For example, drug stores, a cooking supply store, boutiques, and even a used store are now selling robies/baby shoes and tutus. Several stores at the mall are carrying them as well. The prices are dropping on these items.

I currently own my office building, but have rented in the past. Each building is different, some will have a layout that works for your business, others you'll have to renovate yourself (you can hire a contractor or do the work yourself). You will probably have to pay for any renovations, and those will stay behind if you leave the space. If you plan to be there for a long time, sign a multi year lease to protect yourself from rent increases and have a clause built in limiting how much your rent can be increased when you sign your next lease (usually described as rent cannot be increased more than x%). Also, put a noncompete clause in if there are other spaces in the complex. You don't know when another space will become available and you don't want the competition next door. This protected me in my first rental and I have a friend who didn't do this and now has the exact same business next door - some of his customers actually went in the wrong door because the new renter deliberately used misleading sings. You lease should also define who is responsible for outside maintainance, any fees that apply to that, who is resonsible for insuring the outside of the building - For example, if someone trips on the sidewalk in front of your space, does your insurance cover that or does your landlord. Be sure to buy insurance for the inside, you will be responsible for any damage or injury inside your space. Put a clause in your lease that defines how you can break the lease - how much notice your landlord needs, any fines or penalties, etc. Have a lawyer review your lease before you sign it. My first lease, my landlord wanted to make me responsible for anything that broke, needed repairs or caused damage as a result of the building - such as the roof, exterior area, heating system - which should all be the landlord's responsibility. EVERYTHING in your lease is negotiable so don't be afraid to ask for a change if you're not comfortable with. A lawyer is a MUST so you know what your responsible for and what your landlord is responsible for.
Good luck with your new business! I love being my own boss, I'd never go back to being an employee.

So far really great advice. So I'm just going to add to it.

Commercial space is rented mostly based on a price per square foot. The lease can be for a year or beyond. You can negotiate developing the property being done by the owner or by you. If you choose to do the renovating you will need the required permits from the city but these costs can help reduce the price of the place per square foot.

You may want to consider talking with a real estate agent that deals solely with commercial property in your area. You will also need an attorney.

Mostly in commercial property the tenant handles all or most of the tayloring of the property to their tastes be it a restaurante, clothing store, day care or anything. Do your research and homework in the areas of your business plan, marketing and market analysis. Know your customers/clients and know your area. These will be two of the most important foundations to your business being successful in concert with having desireable products or/and services.

Before you sign anything,,,,,

I would discuss my business plan with my accountant and lawyer to learn exactly what is needed as far as set up, liability insurance, insurance for the area you are renting.

Many things to consider so don't make a quick decision. Gather all the info you can possibly get and then make an informed decision after consulting with professionals.