Some people live for negotiation while some people would prefer just to keep their heads down and quietly work on. However, when it comes to your business, you need to have the best location at the lowest rate possible to remain profitable. Whether you’re searching for a brand new property for a brand new business or planning to renegotiate the terms of your current lease, you are likely wading through some murky waters and you don’t want to get bitten. If you want to negotiate your lease terms and get the most out of your deal, you need to keep the following things in mind.
Know Your Budget, Realize Your Goals
Before you start any of the process, you need to be aware of your budget and the things that you want out of the building, the landlord and the lease terms. What are some things that you are willing to bend on and what are the things you absolutely will not negotiate over? A commercial lease can be a significant source of stress and drain on your pocket book if you don’t make a good deal. Take the time to figure it out so you get it right the first time.
Hire A Leasing Agent
The first thing you should do before you look for properties is find a leasing agent that has your best interests at heart. While it might seem like an unnecessary expense to you now, just think about the amount that a bad lease will cost you. A leasing agent will make sure that the space you want for your business is up to code and worth the price you pay. They will navigate the lease terms and make sure you get a good deal.
Be Truthful And Vocalize Your Desires
Across the board, you need to be truthful and vocal, especially with your leasing agent. If they are unaware of what your expectations are, you might end up with lease terms that you don’t like. Be honest with the landlord. If you are renegotiating terms, make sure that you bring up the issues you have with the space, as long as you remember that tact goes a long way when you have to continue a relationship with a landlord beyond the negotiation.
Check Out Multiple Rates
Maybe you have found your dream location but it’s just not worth the asking price and your business would lose profitability if you took that spot. Make sure you don’t just get stuck on one property! There might be options out there you haven’t even considered with even better lease terms. Furthermore, you can’t really adequately negotiate a reasonable rent offer without knowing the market price in the surrounding area.
Consider Offers, But Don’t Settle
The first thing that’s going to happen in a negotiation, whether it’s a new relationship or a renegotiation, is the property owner will make an offer for rent and it’s usually the maximum that they think a tenant may agree to pay, but they usually expect to get less and you definitely should offer less. Most agents recommend coming in 10 to 15% below the asking price and work for a number between the two that you can settle on. Remember that there are other options out there, no matter what kind of business you own your agent will help you negotiate lease terms in the area that’s right for you.
Make Sure To Carefully Review The Lease
This one should seem obvious and yet its one of the biggest mistakes that many people make. Read the sections that you might consider standard extra carefully, like the operating costs, because you might actually end up paying for more than you originally thought depending on the type of lease of you have. Look out for the hidden costs that might be contained in the lease that are trying to sneak in. This is where a leasing agent is highly recommended.
Need A Leasing Agent?
No matter whether you are preparing to move or just starting out, the team at LCI Realty can help. We will negotiate the best lease terms for your business and make sure you are happy with the property you are in. Want more information? Contact LCI Realty at 480-565-8981 now.
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