Rent is generally one of the largest expenses that a business will have, but many businesses do not take the time to properly negotiate their lease agreements. This will generally leave them with a number of hidden costs which could have been avoided. To ensure that you do not fall into this trap, you need to consider some tips for negotiating a commercial space for lease near me.
Know Your Business Needs
Before you start negotiating your lease, you need to do a little bit of homework. This homework will be to determine your business needs. When considering your business needs, you need to look at your current and future needs in terms of the space you need, your budget and your preferred location.
If you are unsure about the long-term needs of your business, you need to consider a shorter lease period. This will result in you having to pay more for the lease, but you have an option of leaving within a few years. You will also be able to walk away from the lease with greater ease.
Always Have A Lawyer
When it comes to negotiating your lease, you need to involve a commercial lawyer. They will have experience in these types of negotiations and will be able to tell you if the lease is unfairly stacked against you. Commercial lawyers will also understand all of the terms which are being used in the lease which you might not.
Understand All The Costs
When looking at the proposed lease, you need to consider all of the incidentals that you are being asked to pay for. Once you know about these, you should see if the lease will still be within your budget. There are times when the incidentals will inflate the rental to a point where you will not be able to cover it.
If you find an issue with the incidentals you should not be afraid to ask for changes. This is important when you are renewing a lease and there has been an increase in the price. Each lease that you sign needs to clearly specify the incidentals.
Check Market Rents
When negotiating a lease, you need to research the market rents in the neighborhood. You can then compare this amount to what you are being asked to pay. Taking to a commercial realtor is a good way to find out the current market lease rates. This information will be very useful when you want to negotiate a lower rental price if the proposed price is too high.
Seek Tenant Inducements
Landlords are generally not going to tell you about tenant inducements when you first talk about a lease, but you need to ask and contact about this. If the property has been vacant for a prolonged period, the landlord will generally be open to offering tenant inducements. The most common inducement will be for the landlord to offer 2 to 3 months rent free. There are some landlords that will offer to pay part of the renovation costs for the duration of the lease.
