"TIME" is "MONEY".
What if you could exchange some of the free rent (time) that a landlord offers you with your commercial lease into cash (money) that you can use right away in your business?
That's something you may be able to negotiate if you take the time to investigate its potential as a part of your commercial lease. Here's more regarding that concept in the commercial leasing tips provided by Dale Willerton and Jeff Grandfield from The Lease Coach. Thank you once again for generously sharing of your expertise with our "Business Success" 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.
Process versus Event: Too many tenants incorrectly view the leasing process as an event – or one big meeting with the landlord. In fact, the more you approach leasing as a process done over time, step by step, the better your lease deal will turn out. Going slowly gives you time to regroup and reapproach various clauses that you want to negotiate.
Trade Free Rent for Cash: If you have successfully negotiated for a free rent period then it is sometimes possible to convert that value into cash and use it for addition leasehold improvements or stock purchases. For example, if you have four months of free rent, with each month valued at $3,000, you could now trade your free rent time period for cash. Justify your expenditures and even be prepared to discount your requested value (in this case, you could lower the value from $12,000 to $10,000) to get the money if needed.
Trade Free Rent for Cash: If you have successfully negotiated for a free rent period then it is sometimes possible to convert that value into cash and use it for addition leasehold improvements or stock purchases. For example, if you have four months of free rent, with each month valued at $3,000, you could now trade your free rent time period for cash. Justify your expenditures and even be prepared to discount your requested value (in this case, you could lower the value from $12,000 to $10,000) to get the money if needed.
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:
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to JeffGrandfield@TheLeaseCoach.com.
What's been your experience?
Feel free to add your comments and thank you in advance
for sharing this post with those in your circle of contacts!
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