- Free Rent?
- Tenant Allowances?
With the challenges faced by businesses today, it makes sense to carefully evaluate every expense. How much more does that process need to be applied against some of the largest expenditures a business will face - those related to their business location!
We've always encouraged our business clients to engage the services of experienced professionals to assist them with aspects of business where the professionals can add tremendous value.
Pro-Vision Solutions Inc. is very pleased to share the following tips and suggestions from The Lease Coach, and look forward to future contributions from them for our audience. Thank you once again Dale Willerton and Jeff Grandfield for sharing these very helpful insights with our Business Success audience!
Negotiating Commercial Leases & Renewals For Dummies
Negotiating for the Free Rent: The most free rent The Lease Coach has negotiated for a tenant was the first four years free on a 10-year lease term. In some cases, the landlord is in such a strong position that free rent is hard to get. The longer the space has been vacant, the stronger your negotiating position. If the agent won’t adjust or increase the free rent on your Offer to Lease, do it yourself (in pen) as a counteroffer.Maximize the Tenant Allowance: Yes, it is possible to receive a portion or even all the tenant allowance money that you require to build out your space. It boils down to the net effective rental rate which means the landlord may be willing to provide as much tenant allowance as you want, provided the rent increases accordingly (effectively, the landlord will become your banker and “loan” you the money required). Some tenants can afford to pay a higher rent, but want to minimize start-up costs. The more convincingly The Lease Coach can demonstrate why you need the money or what other landlords are prepared to offer, the better chance you have of receiving what you are looking for. We ask for more tenant allowance than you need as landlords will likely counteroffer.Go Slow for a Better Deal: Tenants often rush a lease deal and leave valuable incentives or inducements on the table. If you have the time to work with, we recommend that you take it. Often, we get tenants more free rent, more tenant allowance or even a lower rental rate just by refusing to sign on the dotted line too quickly. If the landlord or agent is anxious to close the deal, you can use stalling tactics to better your position.
What's been your experience? Please add your comments and helpful suggestions for our audience, and share this post with those in your circle of contacts!
* In Closing: Has your BUSINESS PLAN taken your future business growth requirements into consideration?
Pro-Vision Solutions Inc. has a number of helpful ways to add this into your BUSINESS PLAN!
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