Commercial Leases vs Residential Leases

Do Commercial Leases Differ from Residential Leases?
Finding a good property is only part of securing a proper location for your business. Signing the best lease is also crucially important. While residential leases are often similar, each commercial lease is different. Each lease is also subject to different laws depending on jurisdiction, so make sure you consult a lawyer for advice.

Preparation is key when signing a commercial lease. Commercial tenants have fewer protections than residential tenants do. This is because the parties in a commercial lease are both viewed as businesses. A commercial tenant is assumed to have more knowledge and expertise than a residential tenant. Be prepared to negotiate on everything. You know what your business needs to thrive, so ensure your lease can help you grow.

Residential leases are most often for one-year terms. Commercial leases have fixed term lengths of several years. Some renew automatically at the expiration of a term. Others don’t. Know how to extend your lease if needed. Short-term leases may allow greater flexibility to grow.

Rent is often calculated based on the square footage of the property. Make sure you know what the landlord is using to calculate the area: for example, if elevators or doorways are part of the space. Clearly negotiate who is responsible for renovations and repairs that may be required, especially those needed to comply with relevant accessibility legislation.

Customize your lease to fit your business. Ensure you’re allowed to put up signs. If you are one of many tenants in a commercial space, consider negotiating noncompete clauses into the lease.

Improve Your Layout and Improve Your Bottom Line

Your store’s layout can influence a shopper’s attitude, demeanor, and comfort level and even stimulate purchase behavior. A well-designed and inviting environment will positively impact the way people react to stimuli and how long they feel inclined to remain in the store.

It goes without saying that customers want to experience a pleasant shopping environment that is easy to navigate and in which merchandise is displayed in an appealing manner. This starts with a window display that draws eyeballs and invites shoppers inside.

Once they enter, customers should find it easy to move through the store. Most people automatically turn right upon entering a store and then move in a counterclockwise direction. Knowing this, put high-margin products, new arrivals, and promotional displays on the right.

Place higher-margin items in high-traffic areas and high-demand items in less trafficked parts of your store. Place complementary items near each other and items that need frequent restocking near storerooms or cash registers. Position high-impact items at eye level or just below.

The amount of merchandise you have on display depends on the customer experience you’re trying to create. Having abundant product on the floor may increase sales, but crowded shelves can negatively impact brand perception, especially if you’re a high-end retailer.

Change displays frequently, both to give customers reasons to come back often and to highlight new products and seasonal specials. Plus, interesting displays and eye-catching visuals induce customers to linger longer and potentially increase the size and value of their baskets.

March Madness Could Hold Secret to Business Success

March Madness brings 16 games a day of nonstop action, heart-pounding emotion, and buzzer-beating excitement.

And when you think about it, basketball is a lot like life in that it requires skill, practice, persistence, and drive.

The determination and ability to triumph on the hardwood is not unlike the grit and passion needed to succeed in business.

Here are some lessons for small business owners embedded in this season of sports drama.

Don’t dwell on past mistakes. Athletes are trained be full-on in the moment. Similarly, in business, you have to think about the here and now while planning for what lies ahead. You will inevitably make mistakes. Learn from them, then let go and move on.

Don’t sweat the small stuff. Passion and drive are important, but succumbing to fear, pressure, or anxiety can consume you, causing your performance to suffer and your business to crash. A losing attitude can take you out of the game permanently.

Success on the field, on the court, and in business comes from confidence and trust. Trust yourself, and trust your team. Trust your experts. If you have people at your company who specialize in marketing or in finance, consider their opinions and trust their expertise.

Winning teams rely on teamwork and good coaching. In business, as in sports, there are times to be open to advice, feedback, and even criticism. Whether the job is on the court, in the office, or on the shop floor, each team member has a role and a responsibility for the unit’s ultimate success.

How Technology Is Impacting Commercial Real Estate
As the decade unfolds, CRE owners/operators, brokers, developers, and investors need to embrace emerging technologies and analytics to help them make more informed decisions and create better tenant experiences.

While in the past, “location, location, location” was the mantra of commercial real estate, looking ahead, the refrain will more likely be “location, experience, analytics.” Here’s how some of the emerging trends will likely play out.

Tenant experience will be a top priority. For CRE professionals, this means investing in technologies to make buildings future-ready. The on-demand economy, increasing urbanization and globalization, evolving workforce demands, and technology advancements are reshaping tenants’ needs and expectations. Today’s commercial tenants demand technology-enabled facilities and personalized experiences.

Artificial intelligence (AI) technologies are changing the way humans and machines interact, but AI is still in the early stages of adoption in the CRE industry. In addition to enhancing tenant and end user experiences, CRE professionals need to figure out how to apply the benefits of AI and IoT (Internet of Things) technologies effectively to improve their own operational and administrative efficiency.

The generation and usage of data will almost certainly continue to surge, and data control, access, and analysis will be critical. CRE companies that do not understand how to capture, use, and protect information to enhance decision-making, improve performance, and design differentiated tenant experiences will be left behind.

The growing use of advanced technologies will enable unprecedented access to confidential and proprietary data. With this access comes greater vulnerability to hacks and attacks, especially as more and more organizations are partnering with external vendors throughout the world. CRE organizations need to recognize and find ways to combat the risks of amassing, managing, and protecting data.

Business success throughout the remainder of the 21st century will depend on the ability to attract, retain, and develop highly skilled talent. In many cases, this will mean hiring or retraining existing workers to ensure they have the analytical skills and data science tools required in the CRE industry of the future.

There are some noteworthy examples of technology innovation in the CRE space that highlight the importance of data, analysis, and the use of digital technologies in the commercial real estate industry. One of these is CBRE’s enterprise experience platform, Host, which enables smart workplace experiences by connecting data from devices and sensors in a building and then leveraging machine learning algorithms. Another example is JLL’s geofencing tool, PinPoint, which employs mobile data to evaluate shoppers’ behavior and applies analytics to generate real-time individualized marketing insights.

Other examples are Alibaba’s innovative FlyZoo hotel in Hangzhou, China (which employs AI-based facial recognition, a mobile app, and Ask Genie, a digital assistant, to create secure, personalized guest experiences) and Alabama Power’s smart neighborhood in Birmingham, which utilizes IoT technology together with a mobile app and Amazon’s Alexa voice-activated security to provide secure, personalized, and efficient applications and services to residents of 62 homes.

Looking further into the future, Bill Gates has made a big bet on Belmont, Arizona, a future smart city that will have high-speed digital networks, high-tech data centers, and autonomous logistics hubs incorporated into its design.

SA Realty Watch Group
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Worth Reading
12 Small Business Positions that Should Be Full-Time
By The Young Entrepreneur Council
Small Business Trends

Part-time and contract positions have become the norm for many workers and businesses, much to the chagrin of many advocates for workers’ rights. But business owners, including entrepreneurs, need to seriously consider making part-time positions full-time. Know what is essential to make your company grow, and hire accordingly.

How to Fight App Fatigue
By Ali Surani

Small Biz Daily

Having an app for everything often leads to one thing: app exhaustion. This occurs when consumers are no longer interested in downloading a new app. This presents a crucial challenge for developers. Consumers don’t want redundant apps, so how do you make sure your offering stands out in the crowded marketplace? This article gives some suggestions for how you can reinvigorate your apps, including using chatbots and voice-controlled systems or exploring augmented reality.

32 Entrepreneurs Share the Books They Always Recommend
By Nina Zipkin

What do a children’s novel, a history of the making of the atomic bomb, a collection of lessons from an astronaut, and numerous guides to better health and wellness all have in common? They’re titles that come recommended to you by some leading entrepreneurs. While some picks on this list seem obvious, others may surprise you. Expand your mind and maybe gain some business inspiration.

This Month – Business Websites
Many business interactions happen online. Show the same amount of care in choosing or building a website as you would in creating the best physical location for your business. Here are some resources to help you get started.

No one wants to have a poor business website. Read this list of common mistakes before you start building one:
The 6 Mistakes to Avoid When Building a Business Website (and What to Do Instead)

Creating a good website can be overwhelming. This article, by a webmaster who has worked on small business websites, gives a comprehensive primer on what you need to know:
10 Key Steps To Building A Great Small Business Website

A good website can only work if people can access it. This article delves into specifics to remember when finding the proper web hosting service:
Secrets of Web Hosting for your Small Business Revealed

Ideally, your website does more than advertise your business: it also creates and generates business. Here are some points to keep in mind to make your website effective:
How to Make Your Small Business Website Really, Really Effective

Online businesses present unique opportunities (and challenges) for customers, or potential customers, who have disabilities. Accessibility legislation can vary by jurisdiction, but this article gives some general tips to help you think about making your website as accessible as possible:
Making Small Business Websites Accessible for Everyone

This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed or published in this newsletter.
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