Neighborhood demographics tell you who your customers and neighbors are – their age, gender, income, education, family size, even what kind of food they like to eat. Knowing these demographics can help you understand your market and target certain types of customers. 

Your building and the area around it should feel safe to your customers and employees. Consider whether the location is well lit, what the crime rate is in the area, and whether or not you need a security system or security guard.

Traffic refers to both where people are driving and where they are walking: car traffic and pedestrian traffic. Restaurants and retailers must consider traffic information including how many people pass by your location, at what times of day and in what direction.

Find out if you are allowed to operate your business in the building or location you are considering. If you tie yourself to an area or space you cannot use because of conflict with zoning regulations, you could lose your rent deposit or be stuck paying for a place you cannot use. 

Ask a Small Business Permit Specialist to confirm that you’ll be allowed to conduct your business from your chosen location.

Email: sfosb@sfgov.org

Call: 628-652-4949

Schedule an appointment in person at the San Francisco Permit Center

Find out about hidden costs

Very few spaces are turnkey ready. Be sure to consider costs like renovation, decorating, IT system upgrades, and so on.

Ask about ADA Compliance

Landlords are required to make public restrooms and ground-floor entrances/exits accessible, or give you notice if the space may not be ADA compliant. Other aspects of ADA compliance will be your responsibility, and you should consult with a CASp (Certified Access Specialist) to help determine the cost of any required improvements.

Learn more about accessibility for business.

Negotiate the lease

Research similar sites in the neighborhood so you can show your landlord the market costs of nearby sites. Review multiple sites to know more about the market. This will help you negotiate the lease in your favor.

If you'd like help reviewing your lease, contact the Office of Small Business by emailing sfosb@sfgov.org

Include contingencies

When negotiating a lease, make sure it is flexible enough, or specifically allows for delays in case it takes longer than expected to obtain your permits.

Understand the lease clauses

Read through all the important clauses in your lease, including how rent is calculated and quoted, the term of the lease, the start date of the lease, and what happens if the landlord decides to sell the property. Understand how communication with the landlord will work, like how you'll contact them when a repair is needed or when it's time to renew your option.

Plan an exit strategy

If you can, negotiate a lease that allows you to transfer your business to a new owner, just in case something happens to cause your business to fail. The clause that allows you to sell your business is called an assignment clause.