Clark Howard's Tips
August 4, 2008
A few weeks ago, Clark explained why a recession is the best time to start a business. Need more proof? Read on.
Have you noticed vacant storefronts as you drive around? The International Council of Shopping Centers now reports the largest historical increase in vacancies. 1 out of every 7 retail spaces in the United States will vacate this year. That creates great opportunity if you want to open a retail location or a restaurant. Landlords need you! And you're in a powerful negotiating position.
If you have an existing business and your lease is coming up for renewal, once again, you have so much negotiating power. But you must be willing to relocate to a shopping center across the street if need be.
And here's a special warning for entrepreneurs: Make sure you get a kick-out clause in your lease. That will protect you should the anchor retailer vacate from a shopping center. Anchor retailers could be a supermarket, a Target, a Wal-Mart or what have you. If they leave, all the ancillary businesses die as traffic drops off. So a kick-out clause allows you to vacate if the big fish goes elsewhere.
Are you facing a penalty for a kick-out clause? Negotiate a lesser penalty. You've got the upper hand.
Consumer advice courtesy of
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