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Negotiate Your Commercial Property Lease

When leasing a commercial property, it is extremely important to negotiate the rent you will be paying each month. Both you and the landlord are trying to come out with the best deal, so once the landlord offers the terms, make sure to negotiate. Besides the rent, there are other ways to negotiate to ensure that you receive the best deal, such as the exclusivity clause, subletting clause, and break clause. Check out this recent post from our friends at SVN | Percival Partners to learn how to negotiate your commercial property lease.

The negotiation of a commercial property lease is a carefully crafted dance where both parties attempt to come out with the best deal. While a landlord/owner is the first to offer their terms, those terms are absolutely open for improvement. As a tenant you should be prepared to fight for what you want, stay firm and always get out on that negotiation dance floor.

Tenants should be aware that any legally binding agreement like a lease should be prepared negotiated and reviewed using a professional commercial real estate Broker. Even if a tenant does hire help with a lease, they should always be aware of their rights. Below we list out the four parts of a commercial property lease that a tenant should always negotiate.

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4 Parts of a Commercial Property Lease to Always Negotiate

Rent Payment

This is the first and last thing that affects a tenant’s bottom line, so naturally it should be the first and last part of a commercial property lease that they negotiate. The rental rate that is noted on a listing should always be viewed as a jumping off point for negotiations, not set in stone.

There are several factors that affect whether a landlord/owner is willing to lower their price including the current market vacancy rate, the physical health of the asset and their current financial situation. While there will be factors beyond a tenant’s control, here’s our best tips for negotiation

Vacancy: Has the commercial property been on the market long? If so…

Posted by: southgaterealtyllc on May 2, 2017