There are a few key strategies to remember when negotiating a commercial lease. Depending on the strength of their negotiating skills, a tenant can save themselves money and frustration over the term of their agreement. With a little preparation and the right approach, you’ll be able to put yourself in a strong position to agree on terms that benefit all parties involved. Here are our top tips to keep in mind when negotiating a commercial lease.
1. Do Your Research
Before beginning any discussion, it’s important to have a clear understanding of the local real estate market trends. Always investigate the market value of the type of space you’re looking to lease. This will empower you with confidence and ensure that you don’t end up paying more than you should.
Conduct a thorough market analysis before negotiating a commercial lease. Study the rates and demand for comparable properties leased within the past few years. Consider crucial details like location, amenities, parking availability, and whether the utilities are up to your standards. Assess each space based on your current needs but remember to never lose sight of your long-term goals.
2. Know Your Priorities
What’s most important to you in a commercial lease? Is it flexibility? Low rent payments? A short-term agreement? Make sure to know your priorities before entering into any negotiation. It’ll make communicating them clearly and confidently that much easier.
When it comes to negotiating a commercial lease, don’t be afraid to ask for exactly what you want. If you never ask, then you’ll rarely get it, and it’s as simple as that. Whether it’s lower rent, flexible terms, or waived maintenance fees, be straightforward about your needs. Consider creating a clear list of priorities, then stick to it. Always leave room for compromises, but don’t allow yourself to be forced into something that isn’t right for you.
3. Be Willing to Compromise
In any negotiation, there needs to be some give and take from both sides. This is generally the best way to reach a mutually beneficial agreement. If both parties achieve their goals, then a positive, long-term relationship can naturally flourish.
Finding the perfect commercial space can sometimes be challenging. Disagreements happen, but conflict can be minimized if you focus on solutions rather than problems. Try to see both sides of every issue. Don’t jump to conclusions or become discouraged if negotiating a commercial lease isn’t as easy as you imagined. You may have to give up something you really want to gain what you truly need, and that’s okay to admit.
4. Have a Walk-Away Number
Healthy boundaries are essential when negotiating a commercial lease. Decide on the largest amount you’re willing to pay per month or the longest lease term you’re willing to sign. Having these numbers in mind will prevent a great deal of hassle moving forward.
Always be prepared to walk away on your terms. Remember that you hold the cards in this situation. If the property owner won’t compromise, then take your business elsewhere. It simply isn’t worth forcing a deal that isn’t in your best interest. There are plenty of properties on the market, as well as dedicated, professional consultants will gladly step up to provide the support you deserve.
We Can Negotiate Your Commercial Lease
Negotiating a commercial lease doesn’t have to be intimidating. With a little research, a clear list of priorities, and the right partner in your corner, anyone can find a space that suits their needs.
If you’re looking to lease a new office space or retail property in Lincoln, Nebraska, then we welcome you to reach out today. Our advisors will gladly walk you through our listings and provide personalized assistance every step of the way. Simply give us a call, schedule a free consultation, or send us a message to get started today.
