BEFORE taking possession of your new office space, here are a few things that you'll want to have negotiated with your landlord.
In this POST, we'll talk about some of the 'conditions and options' you may be able to build in to your commercial lease.
With the following Commercial Leasing Tips for Tenants from our friends at The Lease Coach, you'll have some great ideas on options that can put you in a stronger position! This type of flexibility can be most advantageous as it allows you to quickly adjust to changing circumstances around you. We think this is a 'smarter' way to negotiate your lease! And while the business owner always has the final decision on matters related to their business, we've come to appreciate the value of engaging experienced professionals in order to benefit from their many years of experience!
Thank you once again Dale Willerton and Jeff Grandfield for sharing these helpful insights with our "Business Success" audience! We trust that you'll enjoy these great commercial leasing tips from our friends at The Lease Coach!
Negotiating Commercial Leases & Renewals For Dummies
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.
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:
Make All Offers Conditional: When negotiating a new lease, make your Offer conditional upon certain things such as financing, partner approval, satisfaction with the formal lease agreement, zoning, construction estimate costs, etc. This will let you legally and ethically rescind your Offer to Lease if outside circumstances hold you back. If you need more time, simply request an extension in writing so you can potentially remove your conditions at a later date.
Month-to-Month Leases: Month-to-month leases have both pros and cons. The pro side is flexibility (as a tenant, you are not obligated to stay longer than you wish) – the con side is lack of security (the landlord could increase your rent or replace you with a more permanent tenant). Frequently, you can lease premises month-to-month on a cheaper basis, especially if the space is already built out to suit you and the property has a few vacancies. I recommend tenants negotiate for a one-year lease term that permits them to terminate with 30 to 60 days notice. This way, the tenant remains in total control.
Negotiate for Free Perks: If your business will require temporary or permanent storage, you can often negotiate to receive it from the landlord for free. Securing extra parking stalls, being allowed more space on the property’s pylon sign, and/or having the caretaker change your lightbulbs or make minor repairs are small perks or privileges that can often be had for the asking. Some property managers will even clean your windows or your carpets for a token charge (or even free …). If you need small favours, ask the caretaker directly and give him a generous gratitude gift when the job gets done.
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.