How do you evaluate if a commercial lease is a good deal ?
I'm looking to start a business soon and I'm in the process of looking at locations. I'm not sure what variables I should be looking to determine which locations are better than others besides price/sqft and synergy with other surrounding businesses. I've looked into traffic count data but it seems unreliable in general because it's just someone the state places on a corner to count cars at random days/times/months etc. I've looked on google but perhaps I'm looking in the wrong places. If anyone can recommend any good sites or books to read Thanks in advance for anyone that can offer any help. 
[{"id": "diiku90", "text": "What type of business?", "replies": [], "depth": 1}, {"id": "diilics", "text": "Talk to a broker? They can tell you in a particular building is expensive or not vs. the market and type of property (office or retail, class A or class C, urban, suburban or rural, etc.)", "replies": [], "depth": 1}, {"id": "diiy4so", "text": "You could also try using a lease analysis calculator.  If you Google it one should come up that would work for you and I found this one if you scroll down callcapitalinvestments.com home page.", "replies": [], "depth": 1}, {"id": "dij1ihz", "text": "National Tenant rep broker here: Find a tenant rep that can guide you through the process. There are 100+ pitfalls when selecting, negotiating, and documenting a lease transaction. All it takes is 1 mistake or foolish oversight that can cost you $10k-$100k+.  Landlords are often sophisticated in their processes and use brokers that represent their interests ONLY, don't forget that. You need someone on your team that knows how to maneuver in the industry, someone that will protect YOU. ", "replies": [{"id": "dij3hlm", "text": "I'd echo this, and typically a tenant rep doesn't cost you anything either. The land lord will pay for it and the rep will help guide you through the process. They also know what is considered a market lease and presumably have done this many times before. This is invaluable knowledge for you.\n\nHaving said that, keep your wits about you. The tenant rep is looking out for your best interests but they only get paid when a lease is signed. So there is always an inflection point when your tenant rep starts becoming a big advocate for the deal because they see a commission coming there way and want to make sure the deal gets done. ", "replies": [{"id": "dik87li", "text": "Solid and I am glad you brought up the inflection point *point. The reality, at least for myself and many of my fellow tenant rep colleagues, is that once we have secured all elements of the deal for our client, and many times gotten them more than they ever could have hoped for, we will push for the close. I am oftentimes tasked with helping my client understand the big picture behind the deal and encourage or discourage them to pull the trigger. I take it that the point you are really making there is for biz owners to keep their head on a swivel, and make sure that their rep is always working for them and not purely themselves. ", "replies": [], "depth": 3}], "depth": 2}, {"id": "dik2jga", "text": "Equity owner here (landlord): We will fuck you over, OP. Listen to this guy and get a broker.", "replies": [{"id": "dik8ipd", "text": "Don't think I've ever heard those words from my counterpart, though we all know it oftentimes rings true. Tenants, even the \"big dick\" alphas of business, often don't have a clue what they're doing when it comes to CRE or real deal making. From what I've learned, people are good at their core business, and should learn to stay in their lane when it comes to dealing with other sophisticated operators. \n\nIt's like some a-hole walking up and challenging Connor McGregor to a fist fight. It doesn't matter that you're not a trained professional, because you chose to tango in HIS domain. And in short order, you're going to get your ass whipped, wake up from going nite nite, and not even know how it happened or really who did it. ", "replies": [{"id": "dikctvi", "text": "Completely true, though really we'll fuck tenants in little ways.\n\nNo cap on CAM expenses? Thanks, we'll create a profit center for management fees charged from a third party adviser that is actually just our own company.\n\nLove your location? Sucks that we have that relocation right without restriction and with only 30 days notice. Enjoy that lower level suite with no view.\n\nLike your current rate? Great we'll continue it with 3% bumps even though you're 20% over market and market bumps are $0.25.\n\nJust some examples. We don't get away with (or even try) this shit on major tenants or tenants with good brokers. But a small tenant or especially someone who will direct deal (usually a renewal in a B asset) - we will structure that lease to gain the maximum advantage for our asset. \n\nI'm not the good cop. Talk to the nice property manager lady with the quarterly ice cream social. Unless you're RBC and you've got 40% of my NRA and then it's probably /u/trav9751 bending me over for 90% of market.\n\n", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dik2o7r", "text": "Sounds like you're not asking about a lease specifically but rather how to identify a retail location - is that correct?\n\nAgain a retail leasing broker specializing in tenant rep should be able to help you. They can access traffic count, $/sf, and other data pretty easily and will, to a degree, help you with research.", "replies": [{"id": "dik3ul1", "text": "Yes I'm trying to figure out a process for identifying a good retail location for my business. Other than demographics , sq/ft price, surrounding business synergy &amp; traffic count is there anything else to factor in? thank you for all the above answers ", "replies": [{"id": "dik4y5g", "text": "* Access (left turn lanes into the site? right turn lanes?), \n\n* Location within the site (end units get more visibility, have better access, demand higher rates), \n\n* Signage (is the monument signage prominent? visible? are there open slots for your business or are your just getting a blade / awning sign?),\n\n* Quality of ownership (does the ownership make improvements, can you rely on them to control the other tenants and retain or bring in more good tenants to the center, etc),\n\n* Synergy or competition in the center (businesses may have clauses that restrict leasing space to a competitor),\n\n* Patio space availability (if that's something you're interested in).\n\nIt's been a while since I've managed a retail asset so likely more. Again, take a retail leasing guy to lunch and pick his brain. Do that three separate times with separate guys. You'll get good ideas and you'll see who you like.\n\nAlso you should be aware that you'll need money up front for security deposit and likely for improvements (improvements may be amortized into the lease payment, dependent on many factors including market and ownership). If you're not an established business you'll also likely need to sign the lease personally - meaning you're personally liable for any unpaid rent or the like (including rent remaining on the term if you shutter the shop early).\n\nThat should give you more to chew on. But yeah: go talk to some retail leasing guys.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]