International Art Materials Association

   eNEWS:  September 13 2017 


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 Leasing vs. Buying
       by Rich Kizer & Georganne Bender

2018 is just around the corner and you may be contemplating a move, opening a new store or even buying the building where your store currently resides. These decisions require both thought and research: in the retail world there is still one golden rule about selection of space: LOCATION, LOCATION, LOCATION. It is critically important to choose the space that’s right for the business; space that offers the opportunity to build retail success now and in the future.

Buying a building can be an excellent investment strategy when compared to leasing space. The question here is financial. Is the money you put into buying the building over and above the investment you will need to open and operate the store? You need to be sure that this large investment will not put you in a difficult situation, now or in the future.  As building owner, you may also find yourself having to put large investments into the building which, under a lease, you would not be required to make.

If you are thinking about purchasing a building you need sound advice from qualified people. Meet with local experts and ask for their opinion on the building you are thinking of buying. Is it a good value? What future demographic shifts do the experts believe will take place that could affect this location? Center your questions on the future development strategies that you need to know to help make the right decision. In both buying and leasing a property these are your “must know” issues. Remember, buying is investing, leasing allows you flexibility.

The benefit of leasing is flexibility: You are only married to a location for a pre-determined period of time. Leasing also means that you will likely have more available funds to operate the store, and you will likely avoid expensive building improvement expenses.

There two types of leases: gross leases and net leases. A gross lease has one specific amount that you will pay in rent each month. There are no surprises because taxes, building insurance, and maintenance are wrapped up in the amount of rent you pay. A net lease consists of rent only, you can expect to be billed quarterly, semi-annually or yearly for taxes, insurance, and maintenance. Under either type of lease you will most certainly have the responsibility of common maintenance expenses for HVAC, plumbing, and usual upkeep requirements.

Rent will always be negotiated in terms of dollars per square foot for the space. Be sure to inquire about a number of available spaces for rent in your market – this is mandatory – to get an idea as to what you will be able to expect to pay for a specific location. Doing your homework prepares you to be able to strike the best deal for your store.

Leases have terms, say five years for example, with the important options of adding two or three more five year extensions at a predetermined rental rate, or based on an increase that is tied to the Consumer Price Index (CPI). It is critical to ensure that you have more than just a single term three to five year lease. ALWAYS have your attorney review the lease and advise you in all transactions concerning the lease. You are leasing this location as a home for your store, moving can be costly and very challenging in reshaping customer shopping habits. Someone who shopped with you at one location may not follow you to another location.

You also need to take into consideration necessary leasehold improvements. These can include painting, lighting, flooring, bathroom, plumbing, slat board for the walls, etc. Who does the leasehold improvements, and who will pay for them, is negotiable during lease discussions. Think about what you want to do, and spend time visiting other stores for ideas before opening lease negotiations.

During lease negotiations you must also address the right to sublease the space to another tenant. You might not be thinking about that now, but it may be important to you in the future. During the sublease period, you are still required to pay the rent to the landlord; you must also collect rent from your tenant.

You can also negotiate Right of Assignment. Assignment, like subleasing, gives you the right to assign the lease to another tenant. What makes Right of Assignment different from subleasing is that it releases you from any further obligations to the landlord. Again, this needs to be negotiated and written into the lease.

So, whether you decide to lease or buy requires due diligence on you or part in order to make the decision that is right for you and your business.

NOTE: We (Kizer & Bender) are not attorneys. This article is not meant to offer legal advice. Before signing a lease, or buying a building, always secure an attorney to receive proper legal advice on everything discussed in this article. You are entering into legal agreements that result in serious financial responsibilities for you and your business


Rich Kizer & Georganne Bender are professional speakers, retail strategists, authors and consultants whose client list reads like a “Who’s Who” in business. Companies internationally depend upon them for timely advice on consumers and the changing retail market place. KIZER & BENDER’s observations are widely featured in national newspapers, national and international industry and consumer publications, and on radio and television programs across the U.S. You can learn more at www.KizerandBender.com.


COPYRIGHT KIZER & BENDER 2017 | ALL RIGHTS RESERVED

  



With over 35 years of experience in the real estate industry, we have the knowledge and expertise to get you the best deal in the best location, all at NO COST to you!
Contact us to find out how we can help your business.
Garrett.Aries@esrcommercialrealty.com or call 818.519.5040



Help NAMTA Promote Survey 

Keep an eye open for emails about helping NAMTA promote the Fourth Edition of the Artists & Art Materials Survey.

If you would like to get a head start on planning your Survey Promotions, visit the Artist Survey Promotional Page  for details.

The results of the survey will be the 2018 Artist & Art Materials Study. The focus of the study is active artists, typically those who have created 10 or more artworks in the past year. The study will cover the U.S. and Canadian artist markets and the results will be FREE to you and all NAMTA members in 2018.

For those of you who are new members or are not familiar with previous Surveys, click here to see Past Studies. If you have questions, or need help accessing past Studies, please contact kbrown@namta.org.



By The Numbers

Millennials are a truly unique generation whose lives are completely integrated into the tech world, making platforms like social media a prime opportunity for marketers to reach them - they’re also very price conscious. But does social media influence millennials’ shopping decisions?

The short answer is yes. One report by Deloitte found that 47% of millennials say their purchase decisions are influenced by social media. For perspective, the figure is 19% across all other age groups.

At least more than other generations, millennials pay close attention to social media when shopping. But it’s not likely they’re there to listen to the marketing messages of brands. Instead, millennials use social media as a way to receive input from their peers about what products and services are best to use.

Information from 2017 Forbes Article

 


Notable Quote


Your most unhappy customers are your greatest source of learning.

- Bill Gates



Art Materials World 2018 - March 4 - 6

If you are planning to Exhibit in Dallas, here are a few things you can mark off your checklist at this time.

For all Dallas Attendees, make sure you visit the Dallas 2018 web page and watch for new information.  Badge Registration will open early in November.


Do you have questions?

Email Rick Munisteri about Exhibiting

Email Karen Brown for any Show or Membership information

Or, call 704.892.6244




Advocating for the Arts - ART MATTERS




Add Give the Arts Day 2017 to your calendar on October 5, and get ready to make an impact for the arts.

Here are a few ways you can help Americans for the Arts for Give the Arts Day:
  • Use this Page to Donate on October 5
  • Cheer American through the Arts on social media with #GiveTheArts
  • Share the campaign with your friends and spread the word!
Click here for more information about Supporting Americans for the Arts.



Fact of the Week #137
Students with high arts participation and low socioeconomic status are less likely to drop out of school than their peers who are not engaged in the arts. from arteducators.org

Read all the Facts





The Association works hard to keep NAMTA vibrant and growing. Many new members learn about NAMTA from information and enewsletters we've sent them. Some find NAMTA.org and Art Materials World information in their web searches. But a really great resource for the Association is you, the membership - by word-of mouth and by the many of you who place NAMTA LOGOs on your websites, Facebook pages, newsletters, and email signatures. (Link the logos to www.namta.org!)

THANK YOU to all who help spread the word!

The following list includes some of you who were mentioned on New Membership Applications in 2017 as being the person or company that sent a new member to your association:

American Design EaselWorks;  Andrew Cook, Savoir Faire;  ARTiculations;  Artist & Craftsman Supply;  CAMEX;  Casey Jones, Flax Art and Design;  Charlene Anderson, The Anderson Group / Purveyor Of All Things Creative;  ColArt;  Courtstreet Art Supplies;  Kevin Jackson, Oxlades;  Kristy from MacPherson's;  Lynn Sauter at SLS;  Lori Chamberliss from MacPherson's Art;  Jackie Hangebrauk from MacPherson Art;  MacPherson's Art Website;  Peter St. James from Princeton;  RGM;  Rhinebeck Artists Shop;  RiteArt/Ningbo Colomax Stationery Co.;  Savoir Faire;  Tracey Felix from The Art Spot;  and University of Montana Missoula.




NAMTA Members can access exclusive discounts through National Purchasing Partners (NPP) - see details. NPP membership is FREE and there is no obligation to buy. Join today to find exclusive pricing from Expedia, Skechers, DocuSign, LegalZoom, Spy Optic, 1-800-Flowers.com and more!



Member News

   
Jerry's Artarama - Houston
and Art Supply on Main - Houston have initiated programs to help the artists and students impacted by Hurricane Harvey.  Read the details . . .

   




Liz Walsh and her trusty dog Althea became the sole owners of The Drawing Board this August.

Liz has been with The Drawing Board for the better part of the last 10 years and has been co-owner with Jody Brown for the last 6 years. The Drawing Board is a premier Custom Frame Shop and Artist's Material retailer in Central Vermont, celebrating 42 years in business.





Check out this video of Steve Ventre (left in the picture) from Onsia - Sound Art being interviewed by "This is LA".
 
Onsia - Sound Art is scheduled to exhibit at Art Materials World 2018.



Welcome New Member


Vero Beach Art Club is the second largest, and second oldest continuously running fine art club in the United States. The club just welcomed their 500th dues-paying member in July and is celebrating 81 years of creative camaraderie and community service throughout Indian River County and the Treasure Coast in Florida.

The Club plans to hold their first Fine Art + Craft EXPO in January 2018. NAMTA members who are interested in the details can contact Betsy Kurzinger at bk353@earthlink.net.

 





NAMTA regularly searches the web for articles and stories that may be of interest to members.

 

 

Bosses urge employees to chill, heal with ‘mental health days’
Sometimes “taking a mental health” day from work is code for “the weather’s nice — I’ll be playing golf…”

I Recently Hired My Husband to Join My Business. Here's How We Made It Work.
The prospect of adding an employee to your small business can be exciting, but daunting at the same time...

5 Techniques for Spotting Mistakes Before They Go Live
Launching a new website can be exciting and nerve-wracking at the same time...

A Survey of 19 Countries Shows How Generations X, Y, and Z Are — and Aren’t — Different
In the near future, three of the most studied generations will converge on the workplace at the same time...

The 7 Top Retail Risk Factors Your Small Business Faces
If you believe the headlines, retail is on its way to extinction...




UPS and FedEx are taking different approaches to peak holiday volume.  If you use UPS for your small package residential shipments, expect to see a jump in costs this holiday season. UPS announced that it will add a 27-cent charge on all Ground residential packages from November 19 through December 2 and then again from December 17 through December 23. Air packages and packages that qualify as large or over maximum limits will also see an increase.

In a notable departure from UPS, FedEx will not follow suit. Instead, the only holiday surcharge they will be adding is for packages that are big or bulky enough to require special handling.

PartnerShip®, the company that manages the NAMTA Shipping Program, has taken a closer look at these changes. Click here to learn more about what shippers can expect this holiday season.

NAMTA members receive exclusive discounts on select FedEx® services through the NAMTA Shipping Program. For more information and to enroll, visit PartnerShip.com/NAMTA.