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Should you negotiate your commercial lease?

by | Sep 23, 2022 | Construction Law

Many business owners have to rent a place for their business. If you find yourself in need of a rental, it is imperative that you understand your commercial lease.

Always read through it before signing, and if you want the best deal, the California Business Journal suggests negotiating with the landlord before agreeing to a final deal.

The process

Negotiating will ensure that you get the best possible value for your money. You do not have to take the first offer the landlord extends. Do not be afraid, even in a tough market, to ask for more or to request changes. It may be helpful to have a professional who can assist you with the process. Someone who is experienced with negotiations will be better able to read the situation and know how much you can push the landlord.

The perks

Negotiating will expose all the potential options you have with the property, You may discover your landlord is willing to extend extra amenities that you would not have received if you signed the first offer. In addition, you will also uncover unfair situations that will ensure the landlord does not take advantage of you.

The strategy

A great strategy in any negotiation for commercial property is to get in the landlord’s head. What does he or she want most? Perhaps the landlord is hoping you will leave so he or she can charge a new tenant more money. However, landlords almost always prefer to keep current tenants especially if they are reliable and stable. They never know what a new tenant could be like. So, use that to your advantage. Negotiate to get a better rent price while playing up that you are saving the landlord from dealing with an unknown tenant.