Why You Actually Shouldn't Call the Number on the "For Lease" Sign

If you've ever called the number on a "For Lease" sign, we're guessing the conversation you had was pretty confusing.

Maybe it went a little something like this...

You: "Hi, I was calling to get some information on the store I saw on Main Street that's empty, next to the flower shop?"

Mystery broker (let's call him "Kevin"): "OK?"

You: "Um, yeah, well, is it available?"

Kevin: "Yeah."

You: "Uhh, OK, how much is the rent?"

Kevin: "It's $40 a foot."

You: "Oh, OK...how much is it per month?"

Kevin: "Well, it's $40 a foot plus triple nets and it's about 2,000 square feet. Can you send me your business plan?"

You: "Wait - I'm not even sure if I'm interested, I don't understand how much it costs, I -"

Kevin: [sighs in exasperation]

Why was this conversation so incredibly unhelpful, and why did you feel like you'd done something wrong just by calling?

In short, commercial landlords and brokers primarily do business with each other - when the phone rings, they're expecting to speak with another industry insider, who understands all the same jargon and etiquette. When an unsuspecting future retailer calls, even their most basic questions make them sound like an amateur.

You may be inexperienced in commercial real estate, but you're no dummy. So how can you avoid this situation?

The best way to look like a serious retailer is to hire a broker who will do the calling for you. All the big guys - hell, all the medium guys - do. Most of the little guys do, too. Your lease puts you on the hook for tens of thousands of dollars - often more - so it's really not the place to cut corners.

But, if you still want to make what we in the biz call "sign calls," here are some things to know:

• Retail spaces are measured in square feet (for reference, an average Chipotle is about 2,500 SF)
• Rents are most often quoted per square foot, per year
• There are often extra charges (i.e. real estate taxes and building operating expenses) on top of rent that the broker may not quote without being prompted. Ask about this. You can call them "extras" or "extra charges" (as in: "are there any extras on top of that rent?"). You may also hear them called "triple nets," "pass through costs" or "expenses."

And last but certainly not least...

• Brokers and landlords are going to expect to review your business plan before they'll agree to lease to you. This is true regardless of whether you hire a broker - there's no getting out of writing a business plan.

In fact, this is but one of many reasons you'll need a business plan. It's so important that it's the topic of our new, free Webinar:

Business Plans for Bricks-and-Mortar
Why they're the key to everything and how to start writing yours now!

It is now streaming, so grab your spot today and save yourself the frustration of a call with condescending Kevin.