Every
business requires a location from which they'll operate. Many start from a home base and move into larger space when the residential location no longer meets their needs. Have you completed a detailed assessment of your needs prior to searching for the ideal location and have you allowed yourself enough time to avoid being pressured into making a hasty decision? How prepared are you to negotiate the terms of the lease on that new location? Here are a few things that the experienced professionals with The Lease Coach have provided for your consideration as you face the prospect of relocating your business. Thank you Dale and Jeff for providing the following tips for our audience.
Negotiating Commercial Leases & Renewals For Dummies
Commercial
Leasing Tips for Commercial Tenants
By:
Jeff Grandfield – The Lease Coach
For many business-owners, negotiating a good
lease or lease renewal against an experienced agent or landlord can be a
challenge. While an entrepreneur focuses on marketing and managing, savvy real
estate agents and brokers are specialized sales people. Their job is to sell
tenants on leasing their location at the highest possible rental rate.
As explained in our new book, Negotiating Commercial Leases & Renewals
For Dummies (co-written with my colleague, Dale Willerton), tenants may go
through the leasing process only two or three times in their entire lifetime –
yet they have to negotiate against seasoned professionals who negotiate leases
every day for a living. Negotiating appropriate leasing terms is vital for an
entrepreneur as the amount of rent he pays will directly affect the business’
financial bottom line.
Whether you are leasing a new location for the
first time or negotiating a lease renewal for your business, these are some money-saving
tips for tenants:
Never
Just Accept the First Offer: Even if an Offer seems
reasonable or you have no idea of what to negotiate for, never accept the
leasing agent’s or landlord’s first offer. More often than not, the first offer
or rental rate is inflated. Many agents use a strategy of starting negotiations
at a higher rate that allows them to give in slightly. When The Lease Coach
negotiates for tenants, we frequently complete lease agreements 15 to 25% less
than the agent’s opening offer. In one case, we negotiated for the asking rate
to be reduced from $8.00/psf to under $3.00/psf. The majority of agents /
landlords build room to maneuver into the Offer.
Hiring
a Lawyer or an Accountant: Very few lawyers or accountants
possess commercial real estate business savvy or practical experience. Before
hiring either, check their websites and be sure they specialize in commercial
real estate. Many tenants are hiring professional Lease Consultants for a more
comprehensive, hands-on approach especially when negotiating and/or consulting
work is required. It is often more important to review the lease document from
a negotiating position, rather than from a legal position. Remember, the
legality of the lease document is rarely in question.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail
your request to DaleWillerton@TheLeaseCoach.com.
Jeff Grandfield and Dale Willerton - The Lease Coach are Commercial
Lease Consultants who work exclusively for tenants. Jeff and Dale are professional
speakers and co-authors of Negotiating Commercial Leases & Renewals For
Dummies (Wiley, 2013). Got a leasing question? Need help with your new lease or
renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com
or JeffGrandfield@TheLeaseCoach.com
or visit www.TheLeaseCoach.com.
We'd be pleased to have your comments, tips and suggestions to further help our audience of entrepreneurs?
* Please let us know if we can help you as you develop your business plan and grow your business.
Pro-Vision Solutions Inc. would be more than happy to assist you with that!
