GOLDEN Commercial Leasing Tips ...

It's been said that: "All that Glitters is not GOLD."

While the prospect of a nice shiny office complex may be very appealing, there is much more that the prudent business owner will want to consider. Beware of the dangers associated with jumping into the 'trappings' of success.  The cost of keeping up appearances can be high, with some obligations extending well into the future. Does the expenditure serve the purposes for which the business was created and if taken on, will the business be able to maintain healthy operations at that level?

In working with clients, we've found that there are usually a number of areas where business owners could benefit from updates or feedback on their business plan. Your choice of location, how it meets your business needs, and more importantly, that of your target audience, should be documented in your business plan. Here are some 'golden' commercial leasing tips from our friends at The Lease Coach. We trust you'll enjoy the following guest post they've provided.

Dale Willerton and Jeff Grandfield

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:

Change the Day the Rent is Due: For many small (or even medium-sized) tenants, the monthly rent represents a large portion of their overhead. Paying the rent on the first of each month may be a financial hardship as other expenses including staff payroll, loan payments, and equipment leases can also come due that same day. During negotiations, or even during your lease term, you can often request and get permission to pay your rent on the tenth day of the month (or even later!). Ask … just what have you got to lose?

Termination Clauses and Outs: A good lease agreement from the tenant’s perspective would include an early Termination Clause. Such a clause can be based on the landlord maintaining occupancy levels especially if you rely on traffic. If you are considering purchasing a franchise, early termination could be based on the continued success of your franchisor. Some business owners like to have the right to terminate in the event of personal/family illness or poor sales volume. 

Measure Your Space: Most commercial tenants lease space and pay rent per square foot. Often, the premises has not been measured properly and tenant is paying for Phantom Space (or space that is reported but does not exist). Measurement discrepancies are common and will affect your base/minimum rent but also your Common Area Maintenance/CAM costs. 

Take Time to Learn: Have you stopped investing in yourself? We know this may sound self-serving, but if you have not read our book, Negotiating Commercial Leases & Renewals For Dummies, it’s time for you to pick up a copy. Reading our book is an investment in both you and your business. 

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.

What's been your experience? Please add your comments and helpful suggestions for our audience. And we'd be pleased to have you share this post with those in your circle of contacts!

* QUESTION:  Has your BUSINESS PLAN taken your location and business growth requirements into consideration? 

Pro-Vision Solutions Inc. has a number of helpful ways to add this into your BUSINESS PLAN! 

Simply CLICK HERE for more information and details from our Website!