Commercial Lease Renewal Tips

These commercial lease renewal tips should help you get the best deal possible.

Moving any business takes time and it can also be a very costly process. Therefore, it makes a lot of sense to consider renewing your current lease and staying at your current location.

Use these commercial lease renewal tips:

1. Start the process early

Your commercial lease is a big expense and vital to the success of your business. It is so important that you don’t assume the process will be quick and easy. Give yourself time to really negotiate with the landlord. This will help you avoid signing a bad deal due to the pressure of time.

2. Research the current market

Getting to work on the process early will also give you time to investigate the current market conditions. The one consistent thing about commercial real estate is the market is constantly changing. There may be different options that weren’t available when you signed the last lease. There may also be a big difference in the current demand for the property that you’re leasing.  Find out if your space is in high demand. There could be a lot of vacancies in your area as well. Knowing the market will help you negotiate a lot more successfully.

3. Assess your current needs

Your business is also constantly changing. Before you get too far into the process or discuss renewing your lease with the landlord, assess how you’re using the current space. It’s important to know if you need more space or less than you’re currently using. It’s also important to know if the current location is meeting your business needs. If your business has grown or decreased in size then moving may make more sense than renewing your lease.

4. Revaluate your renewal option

Commercial leases often have a renewal option that offers specific terms and rental rates that are guaranteed. However, you shouldn’t blindly agree to those terms. There are so many cases where a tenant can negotiate a better deal than their option provides that it makes little sense to blindly accept the option.

5. Consider moving your business

Moving your business will cost money and it is also a hassle most people dread. However, it may make sense to consider moving your business due to a variety of reasons. Knowing the market will help you negotiate, but it also may provide a better location for your business as well. You may find a property that better fits your business and budget. Keeping an open mind when doing your market research can pay serious dividends.

6. Be ready to negotiate

It’s always important to look at your landlord’s proposed lease agreement as nothing more than a starting point. Some people don’t like to negotiate things like lease agreements. It also tough for people to negotiate the best lease agreement possible when they’re not familiar with the process.

7. Don’t rely on your relationship with your landlord

Business is business so don’t assume that your landlord is going to take care of you. Your landlord may not give you a good deal because you feel there is a good relationship.  New tenants tend to get better offers than existing tenants so make sure to check out all the tips above before signing a new lease.

8. Tenant representation helps

It is so important to know what tenant representation is and why you need it. Your landlord is going to be looking after their own best interest. Therefore, it makes sense to have an expert looking after your best interest. It’s also important to understand that a tenant representation broker brings a lot to the table without costing you a dime. The landlord pays for your tenant representation out of the fees they use to get their own representation.