Negotiating a lease renewal can be tricky if you do not know how it is being done. In contrast, if you understand how it works, three exceedingly great benefits will be opened to you.
The number one benefit is that evaluating your current business position as a tenant will be made comfortable and secondly, you will be presented with a chance to re-examine the current commercial real estate market and thirdly, information gotten can be utilized in negotiating a better lease agreement.
That being said, as a corporate tenant, below are five tips that will enlighten you on how to negotiate the best commercial lease renewal.
- Early Negotiation is King:
During lease negotiation, it is ideal and knowledgeable to stay proactive than being reactive. Therefore, begin very early. Evaluating your lease agreement must always be an ongoing process.
If by chance you figure out any weakness that stands in favor of your landlord during renewal, months before the lease agreement expires, negotiate a fair deal so that he can be aware that if he turns the deal away, you will have enough time to search for another space.
- Check Into The Real Estate Market:
The fundamental reality is that, the real estate market is dynamic. The unforeseen occurrence may open a way for a tenant to negotiate a lease early. This will necessitate tenants to monitor the market for any opportunity that will work in favor of the lease negotiation and allow him to stay in the loop of real estate trends.
- Hire a Broker to help Negotiate Accurately:
If your company isn’t conversant with real estate market and lease negotiations or as an individual, you are busy and have no sufficient hands to handle the lease renewal negotiation accurately. The best alternative is hiring a broker for the task.
Competent brokers like Austin Tenant Advisors Austin office space are always up-to-date regarding market conditions and opportunities and would aid allowing you make most of the information and bring value to the table.
- Research Alternative Space in the Market:
It is highly essential you investigate other commercial facilities and landlords in the market. As fortune may have it, you might find an alternative that is worth exploring and competitive. Also, you must be on the lookout for varying lease terms that comes with this offer:
Less debt, lower taxes, desirable amenities, building signage opportunities, etc.
- Take Into Consideration The Productivity of Your Rented Space:
The undeniable fact is that the location of your business is capable of altering your productivity level- positive or negative. This brings the geniuses of, and vitality of how your space ranks in comparison to other locations as productivity is measured. Negotiate for a space reduction if you realize that an area you are occupying isn’t productive.
Besides, you can negotiate for a short lease and a clause with the right to extend in coming years if increase productivity is actualized and if not, you won’t need to wait before you start negotiating for the better option.