The cliche in business is that the key to business success is: location, location, location.

If you own a business in which the location is an important reason for the success of the business, and you’re considering selling, then the lease is a very critical issue in the sale. The time to deal with this is not in the middle of a sale, but before you ever place the business on the market.

Business brokers can recite many a story where, on contacting the landlord in the midst of a pending sale, they’re told that the landlord has other plans for the space when the lease is up next month. Fortunately this isn’t a common occurrence, but if the lease is an issue, the time to deal with it is now.

After reviewing the lease, set up an appointment to visit the landlord. If there are only a few years left on the lease, see about getting an extension. If you have more than a few years left, still check into getting an option to renew the lease at the expiration of the present term. After all, if the location works, the longer the lease the better in most cases.

It might also be a good time to see if the landlord has ever considered selling the premises. By owning the property, you’ll never have to worry about the lease again.

Nancy Cofield, CBI, is president/broker of Corporate
Investment International of North Florida, Inc. She can be
reached at 904-996-1666 or ncofield@cii-ma.com.