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If there are any aspects of the commercial terms that you are unhappy with, you must communicate that to your landlord. 3. Never sign either a disclosure statement or a lease that you are not completely happy with. Don't just focus on your base rent. You also need to consider your total occupancy costs with outgoings and promotional levy. That's why you must start the lease negotiation process as early as possible. Know where you are going, up to 18 months prior to the expiration of your lease, because landlords are doing their budgets at least 12 months in advance. If you know you can't achieve the best possible terms, have a Plan B, C or D at the ready: Should you be relocating to another part of the shopping centre or moving to another shop location? As a pharmacy operator, you also need to understand how important you are to an individual owner or a shopping centre, and the underlying value that you present to a landlord. You must sell yourself and appreciate the significance of your business in relation to the wider community. Pharmacists are highly regarded members of the community who are extremely well regarded by banks and financial institutions. A good pharmacy operator will generate excellent regular traffic to a shopping centre or small group of shops, which is important to a landlord. They need to be constantly reminded of what you're doing for their shopping centre. The changing circumstances in the Australian retail pharmacy industry warrant a more assertive approach by pharmacy operators to ensure they achieve the best possible commercial terms. Do your homework and research, and start the lease negotiation process as early as possible to be able to make the right strategic decisions for your business. Bruce Engeman is an independent property advocate working exclusively for pharmacy operators. Since founding Engeman Retail in 2008, Bruce has handled hundreds of pharmacy negotiations, achieving excellent results. He has more than 19 years' experience in retail and commercial property and previously worked as a corporate lawyer for Shell, as a solicitor in private practice, and in senior shopping centre management and leasing at Westfield. Contact Bruce by email at bmengeman@bigpond.com or by phoning 0418 470 175. Healthcare • Issue 4 7 PHARMACY Healthcare • Issue 4 7