How do I sell a retail store when the lease is ending soon?

A store without a secure location is a weaker offer, because much of its value is where it sits. Read your lease first. Check the renewal option, the notice you must give, the rules on assigning the lease to a buyer, and whether the landlord has to approve the new tenant. Your lawyer can tell you what the document allows.

Then approach the landlord. Ask whether they will renew, on what terms, and whether they would accept a buyer. Some landlords will give a letter of intent or a consent in principle. Even a conditional answer lets a buyer plan. If you can, negotiate any renewal before you go to market, rather than leaving it as a closing condition.

If the landlord will not commit, be honest with buyers early. Show what is portable: the brand, the online sales, the customer list and supplier terms. Some buyers will want to relocate, and they will ask what that costs. Let them have the facts rather than discover them in due diligence. Give yourself time: landlord answers can be slow, and a deal can stall while everyone waits for one signature.

Key takeaways

• Read your lease for renewal, assignment and approval terms.
• Ask the landlord for a written position before you list.
• Be open with buyers about what is and is not secured.
• Highlight what is portable if the location is uncertain.