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A lease renewal is an opportunity to negotiate

On Behalf of | Feb 23, 2017 | Commercial Real Estate |

If you are approaching the renewal phase of your commercial lease, there are a number facets of the lease that you may want to consider negotiating with your landlord. Of course, not all landlords are interested or willing to negotiate a lease, but in the commercial real estate world, it is common to negotiate at least some aspects of the agreement. As with all business negotiations, it is always wise to have proper legal guidance when entering into such a negotiation.

Depending on how long you have already been in the lease and your general satisfaction with your location, you will probably want to address two main areas of the lease — the rental price and length of the term, as well as repairs and improvements. It is not uncommon for the renewal phase of the rental agreement to feature a hike in rent. However, with some careful negotiating, you may be able to avoid this or minimize it. Likewise, you may be able to secure more a desirable term for your new lease, whether that means a longer term with lower monthly cost, or the freedom to move with relatively low hassle.

If your business has been in a space for a while, it may be time to consider some upgrades or improvements to your space. However, if these improvements can be demonstrated to improve the overall property value, the landlord may agree to shoulder some of the cost, or offset your rent. Similarly, it is possible that a landlord may agree to undertake some repairs or follow through on needed upkeep.

These broad measures are an extremely basic overview of general things that might be negotiated. Of course, these negotiations can be difficult to undertake for those who are not well-versed in contract law and real estate negotiations. It is always wise to enlist the guidance of an experienced attorney who can help you fight for the best deal and set you on a good path into a new season of doing business.