You Have the Right to Remain Silent...and Let Your Broker Handle It

It's flipping freezing outside, and that means we've been binging spending plenty of quality time at home with our friends Netflix and Hulu thinking about Miranda. No, not that Miranda (though we do think Charlotte was out of line for suggesting she color her hair) - we're watching true crime and thinking about Miranda Rights. You know,

You have the right to remain silent. Anything you say can and will be used against you in a court of law. You have the right to an attorney. If you cannot afford an attorney, one will be provided for you. Do you understand the rights I have just read to you? With these rights in mind, do you wish to speak to me?

We got to wishing there were Miranda Rights for retail space tours. Don't get us wrong - there is no shortage of laws designed to protect consumers in real estate transactions. But most of those laws are meant for residential transactions...and, most of these laws are not common knowledge to regular people.

So, if you're going to go out and tour space without a broker of your own, before you walk in the door, remember your retail Miranda Rights -

You have the right to remain silent. Anything you say can and will be used against you in [your negotiation].

Remember, the broker who shows you the space doesn't represent you - she represents the landlord. And while she may be super nice, she is sizing you up to see whether she feels comfortable recommending that her client, the landlord, sign a lease with you. You can't opt out of making a first impression - and literally being silent is pretty awkward - but be mindful of oversharing. Once you've said that you're planning to fund your buildout with future Powerball winnings, it's going to be a real challenge get anyone to forget you said it.

You have the right to an attorney [and a broker]. If you cannot afford [a broker, that's ok because Landlords pay their commissions. You do need to figure out how to pay an attorney]

You have the right to be represented by a retail real estate broker who negotiates deals like yours for a living. And guess what? The landlord pays their commission - not you. You may come out of pocket for additional consulting, education and resources - for instance, our First Location Program has a monthly fee - but the commission, which can run anywhere from $20-60K+ depending on the deal, is paid by the landlord. You do need to hire and pay for an attorney - but investing in a good lawyer now is going to save your @$$ in the future. Trust us on that.

Do you understand the rights I have just read to you? With these rights in mind, do you wish to speak to me?

If you don't understand something the landlord's broker says, ask questions! Commercial real estate speak is like a completely new language, so its better to ask for clarification in the moment than base your rent assumptions off a misunderstanding. Once again, a broker of your own is super valuable here, because they can play translator with you later without making you look inexperienced.

Touring a retail space isn't exactly like being questioned by the police - but your interaction with the landlords' broker will be consequential in the trajectory of opening your business, so take it seriously!