Dear Pedal,

I’m opening a bakery and I would LOVE some advice on how to negotiate rents. I read your newsletter so I know the number I see on a flyer is supposed to be negotiated, but how do I know how much to negotiate it? I definitely want to get the best deal possible but I HATE haggling!

Help please!

Bashful Baker [not their real name]

Dear Bashful Baker,

THANK YOU for writing in to us - it’s a great question, so let’s dive in.

My first pro tip is to use a broker - come on, you knew I was going to say that! Brokers negotiate retail deals all day every day - they will have a good sense of what is “market rate,” meaning, the rental rates of similar spaces nearby. ...

"What if the right space for me isn’t out there?”

This question comes up on many First Location Program consultations, and most of the time, it’s super easy for us to answer. There are dozens of “right” retail spaces on the market at any given time that could work for a business, and, after all, you only need one. When you’ve got super clear real estate criteria, it’s typically pretty easy to find a handful of spaces that could work. Narrowing them down and 🕵️‍♀️ picking the best option is the hard part.

But for Pedal Retailer District Champagne, DC’s restrictive liquor license laws cut our options down dramatically. This is the story of how owners McLean and Joseph persevered to loc...

Retail rents are HIGHLY negotiable. On a scale where 1 is Taxes and 10 is Facebook Marketplace, I’d put retail rent at a solid 9. Since rent is one of the highest fixed costs for brick-and-mortar businesses, it’s worth the upfront investment to negotiate it down. You will absolutely have to spend some money to do this (brokers, lawyers, architects etc.) BUT this “one weird trick” is actually free, and invaluable.

I’m talking about preparing and practicing a killer “Elevator Pitch.” For those who spend elevator rides frantically ping-ponging their eyes around to avoid the catastrophe of making eye contact with a stranger, I’ll explain. An Elevator Pitch is a clear, confident and compellin...

I’ll say it – everyone loves to hate lawyers. They’re right up there with telemarketers and politicians on the list of most maligned professionals, and when you’re scraping together the cash to fund your Capital Budget, legal fees get a lot of scrutiny. And we get it – every dollar counts!

You cannot forgo an attorney for your lease. This has been the subject of numerous other newsletters, and it’s a requirement in our First Location Program. (Don’t believe me? Reply to this email and we’ll happily tell you why.)

You CAN manage your legal fees, but here’s the thing - most people actually do it wrong and end up i) spending more, ii) getting a worse lease, or iii) both. In many situati...

It’s the beginning of spring, and over here at Pedal we’re about to begin Babywatch 2024. In case you missed the news, or if you’re reading this like “why are they talking about a baby?” I’ll catch you up to speed.

Abby, Pedal cofounder and retail broker extraordinaire, is a few weeks away from having a baby. Her FIRST baby. So of course, I am very excited to welcome Abby into the club of women with no shame and limited bladder control on trampolines.

As you can imagine, in addition to our regular constant chatter about retail real estate, we’ve also been talking A LOT about childbirth and babies these past many months.

[If you’re now asking yourself, “oh my god, is this com...

Our society is so polarized that we can disagree on some of the most fundamental topics, like whether The Righteous Gemstones is a genius work of art (it is), or whether life is worth living without cheese (it is not).

Still, there are a few baseline things we can all agree on:

No one wants to be taken advantage of

Everyone likes a good deal

In retail real estate, your best safeguard against #1 is to use a reputable retail real estate broker. But #2 is tricky, because when it comes to brick-and-mortar business, your “good deal” is almost certainly not my “good deal”.

Your broker’s job is to ensure that the deal you’re considering is within the realm of normal for your m...

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) - 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 designe...

A few weeks ago, we talked about why you shouldn't be afraid of a ten-year lease term, but we know that many new retailers are most comfortable starting with a five-year term (or even shorter).

If you determine that a shorter lease term is best for your business, here are two tips to keep in mind:

1. Ask for multiple renewal terms of at least three to five years a piece. If things are going well, you do not want to find yourself homeless with a growing business.

2. Negotiate your lease like you're committing to it for ten years or more. You may be tempted to think that you don't need to think long term in a short term deal...

BUT leases are like dogs, and just as you house train a puppy ...