A commercial tenant may spend a significant amount of time locating the perfect place to do business. The way the market here in Orange County and elsewhere in the country appears to be at this time, a prospective tenant may be able to negotiate more favorable terms when it comes to the lease. In fact, a landlord may agree to throw in some free perks as well.
Even though both parties want to ensure that they receive the best deal possible when it comes to the monetary terms of a lease, that does not mean that a tenant cannot negotiate for other items as well. It may be possible to negotiate for some free perks that would make it easier on a tenant to do business in the desired location. For instance, a tenant may negotiate to pay only a minimum rent, or no rent at all, during the build out of the space. It never hurts to ask.
It also doesn’t hurt to ask about getting more space for signage, extra parking spaces or even storage space. The deal could include free carpet cleaning and window washing. Once in the space, a tenant could request small repairs or small tasks such as light bulb replacement at no charge.
While a primary focus of negotiating with a landlord involves the monetary terms of the agreement, it makes sense to consider the possible perks that could come with the space for free. If a tenant has a reasonable need that might be accommodated, it never hurts to ask the landlord to throw it in for free, or at worst, for a nominal fee. Of course, in order to ask the right questions, the business owner would first need to have a clear picture of what will be needed in order to make the most of the space. It may help to have the assistance of an Orange County real estate attorney to make sure that all bases are covered.
Source: exclusive.multibriefs.com, “Negotiating commercial leases: Negotiate for free perks“, Dale Willerton and Jeff Grandfield, May 10, 2018
