Discover how location intelligence can significantly enhance your position during lease renegotiations and support your company's growth and long-term profitability.
The internet can give you tips and advice on how to properly renegotiate commercial property leasing with ranging complexity on the matter. Data is your best friend because it arms you with the information you need to approach negotiations from an informed standpoint. Location intelligence is data that can ensure you come out of a negotiation with a win-win for both parties. By having a full picture of your standing, including gaps in knowledge filled by Echo’s datasets, you can negotiate lease terms that support your company's growth objectives and drive long-term profitability.
There is a LinkedIn Advice page that asks “How can data and analytics improve your lease negotiation skills?”. Answers to this question were formed under topics such as “Know your market”, “Know your client”, and “Know your options”. Whilst reading through the contributions made by other experts I found the following comment under “Know your leverage”:
“Incorporating data-driven strategies can significantly enhance your position during lease negotiations. Utilize tools such as performance metrics, tenant demand analysis, and lease comparables to gain insights into market trends and competitor positioning.”
This is a pretty straightforward answer, but something is missing. After checking all the other contributions it became apparent that what I was looking for simply didn’t exist in the discussion: No one mentioned location data.
Picture the perfect commercial site. It’s on a popular urban street, near good parking locations, in proximity to competitors, and so forth. Moving is the last thing you’re thinking about, but that lease is close to expiring and lingering in your mind’s back cupboard. It’s not that moving is a bad thing, sometimes it’s even necessary but when you’d like to stay put the lease renegotiation process is essential.
Commercial lease renegotiation is a strategic process wherein tenants and landlords collaborate to redefine lease terms in a manner that aligns with their respective interests. This negotiation dance aims to optimize cost savings, maintain seamless business operations, highlight the site's value proposition, and potentially unlock additional benefits for both parties involved.
Like the LinkedIn Advice article, the internet can give you tips and advice on how to properly renegotiate commercial property leasing with ranging complexity on the matter. It’s our job to tell you why location data plays a big deal in it too. Data is your best friend because it arms you with the information you need to approach negotiations from an informed standpoint. Location intelligence is data that can ensure you come out of a negotiation with a win-win for both parties.
At Echo, we provide the location data you need to secure favorable terms that align with your business goals. This blog will cover how you can lease a commercial property with location intelligence and why it will help you through the renegotiation journey.
Our comprehensive datasets fill the gaps in knowledge you have around footfall and location insights so that you get a full picture of where you stand. You can layer your store performance data with accurate historical foot traffic insights, demographic profiles, and competitive benchmarking. You’ll be walking into the negotiation more prepared than a lawyer.
Let’s break down how location data makes this possible.
Historical foot traffic, demographics, and competitive benchmarking. These three cornerstone data types reveal a lot about your commercial site, but how does it give you the edge in negotiations? You have to visualize your site as a POI and what it means for the neighborhood around it, the foot traffic, and the relation it has to other POIs.
You can use the historical foot traffic data to show how many visitors the site gets, and how well it has been performing over the time of your lease. That shows it’s not only a desirable site for your business but also for your customers.
Demographic data can show why the site is in an ideal spot for the demographic population of adjacent neighborhoods. For instance, you can demonstrate that the site is strategically near certain neighborhoods of a particular income bracket that typically visit your commercial store.
You can use other POIs, like a parking lot, to explain that it’s easily accessible and therefore convenient for visitors. On top of that, you can benchmark your location with competitors and show how it’s bringing more customers due to the other factors we’ve just highlighted and make a comparison.
Now we get to the next part, why are you showing all this? The data demonstrates the long-term viability and growth of a store location during the lease renegotiation. You’re presenting compelling evidence from accurate foot traffic insights, showcasing the store's performance, and therefore the potential of keeping your commercial business at this location.
This renegotiation isn’t just about extending your stay, it’s about doing so in the best possible terms. Location intelligence allows you to give a comprehensive understanding of your site and what value it brings to your business. Historical foot traffic data is concrete evidence of your site’s appeal and performance, illustrating its value for your customers. Demographic insights reveal why it’s a strategically positioned location, and how it caters to its immediate community. And, by analyzing the proximity of your site to other POIs you're underscoring its success.
The recent change in consumer behavior and rapid growth of e-commerce businesses have raised questions about the future of brick-and-mortar retail sites. However, not everyone in the retail space is shifting to a full online presence. In the US, general retail spaces had three times fewer empty spots compared to regional or superregional malls and lifestyle centers, showing that there's a high demand for these kinds of places. High demand means plenty of competition. There’s value in keeping your commercial spot, and therefore it is pertinent your lease renegotiations are favorable to your business.
By having a full picture of your standing, including gaps in knowledge filled by Echo’s datasets, you can negotiate lease terms that support your company's growth objectives and drive long-term profitability.
Want to see how location data can help support your company objectives and win you favorable lease renegotiations? Get in touch with our team to learn more about our non-PII and GDPR-compliant data, and how it can give you the best intelligence.
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