Lease costs are on the rise, and putting a big dent in the brewery bottom line.
In this short post and video I’ll share ideas to help you keep those rising lease costs in check.
First, make sure you have the original, signed lease document along with any addendums or renewals. Sometimes these docs get lost in the shuffle, and it can be awkward to ask your landlord for a copy, especially if you’re getting ready to negotiate a renewal.
Next, summarize the key provisions of the lease: Base rent, triple net costs, term of lease, renewal options, etc.
Identify those terms and conditions that are most important to you.
Leases are often long and boring and full of legalese that makes it difficult to quickly identify the important stuff.
Do yourself a favor, and make a bullet point list of the important lease terms so you have it at the ready.
Finally, take a good hard look at the triple net costs (NNN) that your landlord is passing through to you. Examples are property taxes, property insurance, and maintenance fees.
Make sure you get documentation and invoice details to support these NNN charges. Trust, but verify the charges are legitimate.
NNN costs are usually billed out based on square footage. So, if you’re in a leased space with multiple tenants make sure the square footage calculations for your space are correct.
You don’t want to be paying more than your fair share of these NNN costs.
Do this next:
- Watch the short video: How to Keep Lease Costs in Check
- Learn more about the Beer Business Finance Association, a network of brewery owners and managers focused on improving financial results
