Help! Need some business advice on Short Term lease

I have the opportunity of a lifetime! I found a location that has very affordable rent in a fantastic high demand location. Here's the catch: the landlord will only rent to me for 12 months and then automatic month to month after that, because the area is deemed to get public water eventually (who knows when) and he just wants to sell the land for development when it does, so he wants to keep his options open.

Do you think it is worth taking a short term lease for the exposure or would I be costing myself too much money in the end? I can't ask for a better location EVER! It is near several hotels and a huge shopping outlet and within minutes of a major highway. He has said he has used the short term lease with his past renters and the last one was there for 5 years and was successful enough to leave and build their own building. What do you think? Worth it or not?

Replies to This Discussion

Permalink Reply by Cheryl Bruss on April 5, 2013 at 11:44am

Sounds like a great opportunity!! I say go if you don't you will never know and always wonder. I rent a place as well rent is very reasonable I have been there almost 1 yr already and am building clientele slowly but surely. Success comes with a little risk and Hard work. Good Luck !

Permalink Reply by Brigitte McDonald on April 5, 2013 at 11:54am

Thanks Cheryl! I have a place now and am outgrowing my space. I need to add operators and this place is definitely good for space and location. I need to add some equipment as well. My hubby thinks I'm nuts and says it will cost me in the long run to move my whole business again and that I will lose customers. Maybe I will, maybe I won't....who has that lucky crystal ball? Thanks for your advice :) Anybody else have any other experience with moving?

Permalink Reply by Susan Ferguson on April 5, 2013 at 12:10pm

I moved almost a year ago from renting a small room in a salon to a 1000 sq. ft. 4 treatment room facility. I too purchased equipment and my business is growing. I am still a sole practitioner and am OK with that. I did not lose any regular clientele, but only moved about one mile away. I rent one room out to a MT and I use the others. I am still small scale but doing better each month I am here. I say go for it when and if you have to move just keep it in the same general area and you should be fine as long as any future location is similar in quality. I do not regret my move in any way.

Permalink Reply by Brigitte McDonald on April 5, 2013 at 12:14pm

Thanks Susan! I appreciate your advice :)

Permalink Reply by Jeanne Cowan on April 5, 2013 at 12:23pm

I would take the space; the opportunity of building a client base might be worth with the gamble of maybe having to move. My only precaution would be to invest minimally in things that you can't take with. Good luck!

Permalink Reply by Brigitte McDonald on April 5, 2013 at 12:28pm

Thanks! I have considered the "can't take it with you" scenario. I really wanted to add mani/pedi to my spa. Do you think you can move that type of equipment? I have to have a plumber run the lines of course, unless I use the line free type. Any experience with that, Jeanne?

Permalink Reply by Susan Ferguson on April 5, 2013 at 12:46pm

Yes you can take the mani/pedi equipment with you. You would just disconnect and cap the lines when you leave. If the plumber does a good job it would not leave a bad footprint for the next tenant if their was to be one. Hopefully you would be able to stay until the sale of the property, then it would not matter. Design can be done with portability in mind and still be classy and beautiful.

Permalink Reply by Brigitte McDonald on April 5, 2013 at 1:05pm

Thanks Susan :)

Permalink Reply by Jill Steele on April 5, 2013 at 12:23pm

I say go for it! Your clients will always have your cell # & website to stay in contact with you & they will follow you!

Permalink Reply by Brigitte McDonald on April 5, 2013 at 12:29pm

This is true, thanks Jill!

Permalink Reply by Ivana Sorrell on April 5, 2013 at 12:48pm

Great Exposure and location.. worry about next year next year.. build up your clients today.. go for it! He may never sell, and you can get started now!!