|Dale Willerton and Jeff Grandfield|
Wednesday, October 25, 2017
"FREE is Good!" in Your Commercial Lease
We've been very pleased to provide our readers with valuable FREE business input that can help owners achieve their own measures of business success.
You've likely noticed that FREE information abounds on the Internet. Free can be good, however we've also found that having trusted professional advisors that bring their expertise and understand the challenges faced by business can be an invaluable resource! We encourage you to build a circle of expertise around yourself and seek their input to help guide your business. As you engage with them and use their products and services, many will be most willing to assist you with a free periodic professional perspective as a part of their working relationship!
From our circle of expertise,
here once again are a couple of "FREE" tips from our friends, Dale Willerton and Jeff Grandfield with The Lease Coach.
Thank you Dale and Jeff.
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:
Free Rent and/or Operating Costs: When negotiating for free rent and/or operating costs, it is generally best to negotiate on a total value basis. Most landlords who could provide two months of gross free rent at $8,000 in value might be more willing to give you six months of base/minimum rent free valued at $10,000. The tenant paying the Operating Costs from the beginning or the commencement date of a lease term will lessen expenses for the landlord who is paying those Operating Costs now.
Spreading Free Rent over Time: In order to achieve the maximum free rent period, you can negotiate to spread the free rent period over time. If you want the first six months free but the landlord will only give you the first three months free, take it, but insist on receiving months 13, 25, and 37 free as well. This lessens the landlord’s risk but you still receive the full financial benefit. Even the last three months free is better than no free rent at all. Be creative.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to JeffGrandfield@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.
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