Why Your Lease is Important

When in New York, my wife loves going to a clothing store called New York Look, where she’s befriended one of the employees who helps her with what she buys. There used to be four of these stores and now there’s one.

One of the more recent closures was a store near the intersection of Central Park West and Central Park South (where a new Nordstrom Tower building is going in). Supposedly the lease was up and the landlord wanted to triple the rent, to $95,000 a month. A lot for a small, locally owned store so I’m sure they’ll soon be a luxury brand in that space.

This is why the banks insist, as should business buyers and sellers, the buyer have a lease, with options, at least as long as the term of the loan. Getting forced out is not good for business, or loan payments.

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