Commercial Lease renewal time allows the tenant to evaluate their current status, examine the commercial real estate market, and utilize that knowledge to negotiate a more useful lease agreement.
By positioning yourself as a tenant, well aware of lease choices as well as the knowledge in developing needs of your business, you may eventually get a more acceptable deal and recoup a portion of your occupation costs.
Start Negotiations Early
Leasing is one of the most important investments. In terms of negotiation, being active is more beneficial than reacting.
Continue to review your lease and contact your landlord months before the expiration date. Due to the volatility of the commercial real estate market, various economic conditions may give you the option to reconsider your lease in advance. Therefore, you need to constantly monitor the real estate market to reap the benefits of these openings or storage possibilities. Having more time for negotiation will always be beneficial.
Comprehend Your Owner’s Renewal Benefits
The homeowners can enjoy many financial benefits when renewing contracts with existing tenants. When a resident leaves the home, the homeowner may incur a rental loss, and also face some financial issues to renovate or make some changes in the home and market the vacant space. This provides an opportunity for successful negotiations. But before negotiating, it is important to comprehend the homeowner’s current situation, his overall portfolio, and the influence and importance of your lease on the market.
Evaluate Spatial Needs
Before discussing renewal with your owner, take the time to evaluate how well your office is currently performing for you. Do you use the space you have? Is the office overcrowded? If your spatial requirements have changed, you may want to improve or reduce your square view or look elsewhere.
Even if you desire to stay in your present location, take the industry to find out about other buildings or structures and owners in the market. You can see a possible solution that is worth exploring and competitive. For example, market requirements and availability may have changed since you last signed the agreement. Or, other landlords may offer various terms of the contract, lower taxes, or additional desirable amenities, So you can use these factors when negotiating your lease renewal with the owners.
Hire a Broker to Help You Negotiate Properly
When you approach lease renewal, you may feel like a captive tenant. Control the situation by appointing a broker to assist in competitive negotiations, they will be aware of the current market conditions and opportunities. Just as the broker will assist you to negotiate an optimal lease when you first go, your broker’s guidance will help you get the best deal as you go through the renewal process. It is important to have an expert on your side as your landlord will take care of his welfare during the negotiation process.