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Planning to renew your commercial lease? Start early

On Behalf of | Feb 13, 2019 | Commercial Real Estate |

After being in a rental space for some time, an Orange County tenant may be comfortable and not want to move. If this is the case, a review of the original lease would be in order some months prior to its end. Starting to think about renewing a commercial lease sooner rather than later could save a tenant from accepting unfavorable provisions.

If the current tenant pays on time and does not cause any problems for the landlord, he or she probably does not want to lose such a good tenant. Even conditions that a commercial tenant agreed to in the original lease could be up for negotiation at renewal time. The sooner a business begins talking to the property owner about renegotiating and renewing the lease, the better the chances are that a landlord will compromise on terms.

This is because he or she knows that the tenant has enough time to find another rental property with more favorable terms. In fact, part of the renewal process often entails a tenant doing some research regarding current market trends as they pertain to commercial rental property. Perhaps rents that were higher when the original lease was signed are no longer an issue. This could be a good reason to negotiate a better price. Maybe other property owners are offering attractive incentives that could be incorporated into a new lease.

No matter what the circumstances, it is a good idea to begin the renewal process earlier rather than later. Reaching the best possible terms for a commercial lease is often the goal of every Orange County tenant — and property owner. The more information that a tenant gathers prior to the renewal process, the better the chances are of receiving favorable terms, and perhaps more favorable than those in the initial lease.