Renewing a commercial lease often involves heavy negotiation because your business needs may change over time. Maybe you hope to change the layout of your existing commercial space, or perhaps you are looking to add elements that may make your team more productive and efficient.
Per Inc., you may have more leverage in these areas as a commercial tenant than you might think. Your landlord may not want to have his or her property sit vacant for months during the search for a new tenant, so if you have certain things you want to request, do so before renewing your commercial lease. If you want to boost the chances of walking away with favorable lease renewal terms, consider taking the following steps.
Know the market
The more knowledge you have about the market, your options and what your landlord stands to lose by having you leave, the better. Keep an eye on the local leasing market so you have a chance to take advantage of savings opportunities when they arise. Develop a sense of how much your landlord may lose if he or she fails to renew your lease and use this information in your negotiations.
Make necessary requests
Make any requests to modify your existing space before signing on the dotted line. List the things you want to update or change and present them to your landlord to see if he or she agrees to cover a portion of the costs. The landlord may be more likely to do so if he or she stands to lose considerable money by having you vacate the commercial space. Find more about commercial real estate on our webpage.