- Free Rent?
- Tenant Allowances?
Can these be included in a lease agreement?
What can be negotiated with a landlord?
With the challenges faced by businesses today, it makes sense to carefully evaluate every expense. How much more does that process need to be applied against some of the largest expenditures a business will face - those related to their business location!
We've always encouraged our business clients to engage the services of experienced professionals to assist them with aspects of business where the professionals can add tremendous value.
Pro-Vision Solutions Inc. is very pleased to share the following tips and suggestions from The Lease Coach, and look forward to future contributions from them for our audience. Thank you once again Dale Willerton and Jeff Grandfield for sharing these very helpful insights with our Business Success audience!
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| Dale Willerton |
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| 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:
Negotiating for the Free Rent: The most free rent The Lease Coach has negotiated for a tenant was the first four years free on a 10-year lease term. In some cases, the landlord is in such a strong position that free rent is hard to get. The longer the space has been vacant, the stronger your negotiating position. If the agent won’t adjust or increase the free rent on your Offer to Lease, do it yourself (in pen) as a counteroffer.Maximize the Tenant Allowance: Yes, it is possible to receive a portion or even all the tenant allowance money that you require to build out your space. It boils down to the net effective rental rate which means the landlord may be willing to provide as much tenant allowance as you want, provided the rent increases accordingly (effectively, the landlord will become your banker and “loan” you the money required). Some tenants can afford to pay a higher rent, but want to minimize start-up costs. The more convincingly The Lease Coach can demonstrate why you need the money or what other landlords are prepared to offer, the better chance you have of receiving what you are looking for. We ask for more tenant allowance than you need as landlords will likely counteroffer.Go Slow for a Better Deal: Tenants often rush a lease deal and leave valuable incentives or inducements on the table. If you have the time to work with, we recommend that you take it. Often, we get tenants more free rent, more tenant allowance or even a lower rental rate just by refusing to sign on the dotted line too quickly. If the landlord or agent is anxious to close the deal, you can use stalling tactics to better your position.
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 share this post with those in your circle of contacts!
* In Closing: Has your BUSINESS PLAN taken your future business growth requirements into consideration?
Pro-Vision Solutions Inc. has a number of helpful ways to add this into your BUSINESS PLAN!
Simply CLICK for more information and details!
