Small Business: Commercial Leasing in Historic Corridors

Negotiating a commercial lease in a historic shopping corridor can be challenging but rewarding. Here are 10 tips for small business owners to navigate this process successfully:

1. Understand the Market
   Research current market rates for similar properties in the area. Historic districts might command higher (or lower) rents depending on the tenant mix, uses, condition of the building, the charm and foot traffic, so be prepared for this. 

2. Leverage the Historic Appeal
   Use the unique aspect of being in a historic area to negotiate better terms. Highlight how your business will contribute to the preservation and vibrancy of the district. If your business will drive foot traffic for other businesses, highlight it.

3. Evaluate the Property Condition
   Inspect the property thoroughly. Historic buildings may require more maintenance and have specific restrictions. Negotiate for repairs or improvements needed before you move in. Remember to consider the Americans with Disabilities Act (ADA) and ensure the business shell/location can accommodate customers with disabilities. Clarify whether Landlord or Tenant is responsible for major systems in the space (HVAC, plumbing, electric). Consider an inspection of these systems before finalizing the lease. 

4. Check Zoning and Restrictions
   Verify that the property is zoned for your type of business and understand any restrictions related to operating in a historic district, such as signage, exterior modifications, and hours of operation. Evaluate parking availability and explore the possibility of reserved parking for your business. 

5. Negotiate Lease Length and Renewal Terms
   Aim for a balance between security and flexibility. Longer leases can provide stability but try to include options for renewal with pre-negotiated terms to protect against significant rent increases.

6. Understand CAM Fees
   Common Area Maintenance (CAM) fees can be significant. Clarify what these fees cover and negotiate a cap or fixed rate to avoid unexpected costs. Be sure you understand who is responsible for what type of maintenance. 

7. Tenant Improvements
   If the property needs modifications, negotiate who will pay for these improvements. Often, landlords in historic districts are willing to contribute to or fully cover these costs to attract quality tenants. 

8. Rent Escalation Clauses
   Understand how and when your rent will increase. Negotiate for a cap on annual increases or tie them to a reasonable index, like the Consumer Price Index (CPI). If your lease includes “percentage rent,” make sure you understand how that is calculated.

9. Escape Clauses and Subleasing
   Negotiate for an escape clause in case your business doesn't perform as expected. Also, ensure you have the right to sublease the property if necessary.

10. Legal Review
    Always have your lease reviewed by a lawyer experienced in commercial real estate, particularly with historic properties. They can identify potential pitfalls and ensure your interests are protected.

    By considering these tips, small business owners can better navigate the complexities of leasing in a historic shopping corridor, ensuring their venture is both sustainable and successful.

11 Business Tips to Navigate the Changing Mayoral Administration

The transition of government administration from one to another can have significant impacts on the business community, especially for small and medium-sized businesses. In this report, we will provide suggestions and strategies that businesses can use to stay relevant and win contracts during the Jacksonville Mayoral transition. We will also share some wisdom from SRC, founded by Jeanne Miller, to help small and mid-size businesses realize their potential.

Suggestions for Businesses:

1. Monitor and anticipate changes: It is essential for businesses to stay updated with the changes in local government administration and anticipate the impacts on their business. They should keep an eye on the new policies, programs, and funding opportunities that the new administration may introduce.

2. Develop relationships with the new administration: Building relationships with the new mayor, city council, and appointees can help businesses to stay relevant and win contracts. They should attend public meetings, participate in community events, and seek opportunities to meet and interact with the new officials.

3. Diversify their services and products: If possible, businesses should diversify their services and products to meet the changing needs and demands of the government administration. They should consider offering new services or products that align with the new policies and programs of the government.

4. Build partnerships and collaborations: Businesses can build partnerships and collaborations with other businesses, especially small businesses, to win contracts and expand their market reach. They should also explore opportunities to partner with government agencies and non-profit organizations to deliver their services and products.

5. Check your contracts: If you have existing contracts with the City of Jacksonville or the independent authorities, now is a good time to check the terms of the contract and points of contact. Personnel often change during transition so be prepared to introduce yourself to the new point of contact.

Strategies to Build Relationships with the New Administration:

1. Attend public meetings and events: Attending public meetings and events is an excellent way to meet and interact with the new administration and City Council officials. Businesses should attend city council meetings, community events, and other public gatherings to network and build relationships.

2. Volunteer for community initiatives: Volunteering for community initiatives is an effective way to demonstrate your commitment to the community and build relationships with the new administration. Businesses can participate in charity events, sponsor local organizations, or support community development projects.

3. Engage with local media: Engaging with local media can help businesses to increase their visibility and reach. They can pitch their stories or offer their expertise to local media outlets to gain exposure and build relationships with the new administration.

Wisdom from SRC:

SRC offers customized counsel and fractional executive services to businesses looking to grow, expand or relocate. They provide sustained support to help organizations identify opportunities and build for the future. Some wisdom from SRC that businesses can apply during the government transition are:

1. Focus on long-term goals: If your business has government contracts, stay focused on your long-term goals while adjusting tactics and strategies for achieving those goals to ensure alignment with the new administration. As a business owner, develop a clear strategy and vision for their business and work towards achieving it. 

2. Build strong relationships: Building strong relationships with the government, community, and other businesses is crucial for the success of any business. You should invest time and effort in building and maintaining these relationships to secure contracts and partnerships.

3. Stay agile and adaptable: Businesses should stay agile and adaptable to the changing business environment. They should be open to new ideas, technologies, and market trends to remain relevant and competitive.

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The transition of government administration can have a significant impact on businesses. But, by monitoring and anticipating changes, building relationships with the new administration, diversifying their services and products, and building partnerships and collaborations, medium-sized businesses can stay relevant and win contracts during the transition. They can also apply the wisdom from SRC to focus on long-term goals, build strong relationships, and stay agile and adaptable.