What You Need to Know About Negotiating a Commercial Lease
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Some retail and commercial tenants can feel intimidated by their landlord or their agent and may find it difficult or embarrassing to negotiate the best deal. This is where Lease Negotiation Services are here to assist you through this process. What’s more, Lease Negotiation Services will do this for you for FREE and only charge you if we make savings!
Lease Negotiation Services can even help you strengthen your relationship with your landlord by knowing your rights and leaving the delicate task of obtaining the best monetary outcome to a property specialist who has had over 30 years’ experience in this field. Some new to this do not even realise that you can negotiate the lease to a commercial property with the landlord.
While many are running their businesses from home during these challenging times, you may still need to have a physical office or shop. If so, then you should do your homework and find the best deal for you. It’s a big commitment and can be over-whelming, so you have to make sure that you consider and scrutinise all the terms before you sign a lease. And most importantly, do your best to negotiate to see if you can get what you want from the deal.
Make no mistake, no landlord or leasing agent would like it if you try to negotiate the terms in their lease, but you can always submit a counter-offer. Retail and commercial lease agreements are often much longer than residential ones, and they have more complex provisions and clauses, so it may be confusing for a first-timer who might not know how to negotiate a commercial lease. Even if you feel you negotiated all you can, Lease Negotiation Services can usually find different avenues to approach to save your more during the term of your lease.
To help you out, here are some of the things in a commercial property lease that could be up for negotiation:
Length of Lease
You should always look at the lease term and whether it suits your business. Most of the time, landlords prefer those that can sign at least a five-year contract, but if that’s too long for you, you can try negotiating it. That said, the more years you can commit to, the higher your chances of succeeding at negotiating other parts of the deal.
This is the calculation given based on the per-square-meter standard, as well as taxes, maintenance costs, and other factors. That said, since the COVID-19 pandemic, more landlords are considering offering discounts to potential tenants. Before you start negotiating the rental rate, make sure that you check that it fits the market rate and consider other things like the history of the building, the potential demand of the location, and more.
There are landlords that offer a reduction in rent when the tenant pays ahead of time or signs a long term agreement, but there are also some who offer other incentives. For instance, there could be a contribution to the fit-out or perhaps a rent-free period. Find out what the landlord is willing to offer in terms of incentives before you sign anything.
Before starting a new commercial lease, a tenant has to make space usable and presentable. You should see if the landlord is willing to make contributions towards the fit-out.
For commercial leases, tenants are usually required to pay the outgoings, including council rates, electricity and water bills, insurance, pest control, management fees, and deep cleaning services to name but a few. These can be a considerable amount when you add it up, so you might want to negotiate it with the landlord, too.
There is nothing wrong with trying to get a better deal out of your commercial lease. It’s only natural that you want to save some money. Lease negotiations happen all the time, and even landlords expect that. If it’s something that you don’t think you can handle, or perhaps you’re not too sure how you should proceed with it, you can get the assistance of experts to do it for you. OR, we will take over from where you left off with the landlord in a bid to save you much much more.
Lease Negotiation Services is Sydney’s top negotiator. Our team of seasoned professionals can handle your lease negotiation to help you get the best deal for your retail or commercial lease. Contact us today to find out how we can help you!