Hidden Value in Your Commercial Lease

TODAY we're going to talk about discovering potentially hidden 'CASH, KEYS, and CREDIT' that could be available for your account! 

(Have I got your attention?)

AND, as enticing as it was for me to try spell the word "KEYS" with a "C" in order to have three "Cs" in my opening line, I resisted that temptation. (smile)

It's also very tempting to 'go with the flow' in negotiating your lease, and the result can be that a significant amount of value is either missed or underutilized. The Commercial Leasing Tips for Tenants in this post offer a number of great suggestions that can improve the cash flow and cash position of your business, regardless of whether you're at start-up, in growth mode, or looking at winding down your business operations.

In working with my clients, I've found that the first two tips have been of particular value as they've been setting up their business locations. It always seems that there are more requirements for cash, than cash available, so these suggestions can really be helpful. At the other end of things, the third tip can put more control into your hands at the end of the term of your lease. We think that's a 'smarter' way to negotiate your lease!

NOW, please enjoy these fine commercial leasing tips from our friends at The Lease Coach!

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:

Negotiate for Cash and Loans: Some landlords will actually pay cash incentives to tenants who lease commercial space in their building. Other tenants can often get quasi landlord loans. Note that this money is often blended into the rent so it’s not necessarily free (the landlord expects a certain net effective return) but it can certainly make your business start-up easier. If you wish to receive a cash incentive or loan, demonstrate why you need the money and explain what you will spend it on (e.g. paint, carpet, etc.).

Turnkey Construction Advice: If the landlord does your leasehold improvements, they are supposed to turnkey the space. It’s up to the tenant to create a comprehensive wish list of the necessary improvements required. In the Offer to Lease, stipulate that the landlord does the space design; secures permits; and completes the job on, or before, a certain deadline. Extras or add-ons will be the tenant’s responsibility; make sure that your Offer to Lease is conditional upon your satisfaction with the final budgeted cost.

Apply the Deposit to the Last Month: Before you put down a deposit of any size for the entire term of the lease agreement, read the fine print. You do not want your deposit held for the term of the lease then refunded since sometimes getting your money back is difficult (especially if you are relocating or property ownership has changed). Try to have your deposit applied to a specific month, or the last month of a lease term to avoid potential problems. 

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?  

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