here is a widespread misconception that the American mall is dead. </p>
Indeed, the advent of online shopping has altered many business models and even led to the shuttering of some retail mall locations.</p&
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However, our New York City restaurant lawyers know that if prospective restaurateurs are interested in making it, they will not dismiss the mall as one who could easily buy something beneath them.<
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Please take a look one that could easily buy something beneathat that mall; it offers a steady stream of potential customers passing by, whether or not they are initially interested in your offerings. This can be enormously valuable, particularly for an operation that has not yet established itself.
Malls Are Far From Extinct.
The Commercial Tenant’s Lease Insider recently published an article on this issue. Here’s what they found:
First, while many customers use the Web to research a product thoroughly, especially for large purchases, they usually go to a brick-and-mortar store to finalize the sale in person. According to a national survey conducted by Glimcher Realty Trust, only about 20 percent of daily social media users shop exclusively online. Even as online shopping continues to grow, it remains unable to compete with malls. The primary reason is that virtual shopping can’t compete with offering a genuine social experience.
True, driving 30 or 40 minutes is inconvenient for people to buy something they could easily purchase with a few clicks. And in some cases, people are taking advantage of those Internet outlets to do so. However, if the bigger goal is to get out and be among real people, shoppers don’t mind doing that, especially if they can persuade someone to join them. At that point, it’s more about the experience than the purchase. It’s for this reason that restaurants in and around malls tend to perform significantly better than those not in these types of central locations.
Now, once you have found a mall you think you may be interested in using to find or further your establishment, you will need to consult an experienced New York City lease lawyer. While each situation is going to be different, depending on the venue and the business model, here are some general steps we’ll want to take:
A review of the lease terms and an inspection. Many shopping centers and malls will want you to accept the space as it is because the landlord doesn’t want to invest money in repairs. Thus, the onus could be on you to fix things like mold, work out air conditioning units, faulty electrical wiring, or bathrooms that don’t meet Americans with Disabilities Act requirements, particularly if you don’t have those issues addressed before you move in. If the landlord doesn’t agree to an inspection, require the landlord to confirm that the space complies with all applicable laws.
Some Common Tips when Negotiating a Mall Lease
econdly, you’ll want to ensure the use clause is relatively flexible. You don’t want to be running to get permission whenever you try to add a new service or product.
If the lease is part of a franchise purchase, please ensure you obtain the franchisor’s approval.
Could you ask for a rent-free use period? This is usually a term of one to two months, during which you renovate the space to your needs. Many places will give it to you, but not if you don’t ask.
Ensure that your commercial lease lawyer includes provisions limiting your liability for early termination. If the restaurant doesn’t do well, you don’t want to have to pay for it for the duration of the lease, especially if we’re talking several years. A liability cap can help you limit those damages.
The Wright Law Firm is a commercial lease lawyer located in Midtown Manhattan—call (212) 619-1500 for a confidential consultation.
More Blog entries:
Judge Scolds Lawyers Using Disability Law to Profit, April 5, 2013, New York City Commercial Lease Lawyer Blog