Leasing or purchasing physical space for a spa can be a crash course in learning a foreign language. With an abundance of acronyms and real estate jargon, the already arduous task of making the right decision can become nearly impossible. Armed with this Rosetta Stone of commonly used terms, you can avoid many of the mistakes made by commercial real estate neophytes.
THE STARTING LINE
Regardless of whether leasing or purchasing, hiring a professional agent in commercial real estate should be the first step. Agents are the best resources for understanding the local market and having an advocate when negotiating for the business’s best interests.
Letter of Intent (LOI)
After falling for a particular space, the first unrecognizable acronym will be the letter of intent (LOI). The letter of intent is the jumping-off point for negotiations between the owner and potential tenant. This is a nonbinding agreement that outlines all the terms and conditions of a particular property. There could be a fair amount of back-and-forth between all involved parties before the letter of intent is finalized and signed. While coming to an agreement on the letter of intent, most of the other important lingo will be brought to light as well.
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Melissa Allen has lived many lives as a dance teacher, biologist, and marketing director before becoming a successful aesthetician and spa owner. All of these former positions help color her opinions, actions, and style. Allen’s career in aesthetics has also been far-reaching; she has been an aesthetician in the back of a salon, a solo aesthetician, a spa owner with several employees, and a global brand consultant. Allen has experienced many of the paths of aesthetics and is open, honest, and willing to share her adventures. As her time in the treatment room comes to an end, she is focusing on mentoring and guiding the next generation of thinking skin care professionals and spa owners.