Rent is one of the most significant expenses for businesses, and there may come a time when you need to negotiate a reduction. This process, however, is easier said than done.
Requesting a commercial lease reduction is more than just a polite request. In most cases, you need a solid understanding of the market, the property and your rights as a tenant before you can start a productive discussion with your landlord.
Legitimate grounds for seeking rent reduction
Certain circumstances can justify a request for a lower rent, including, but not limited to:
- If comparable properties in your area are leasing for lower rates
- If the property has sustained damage or requires significant maintenance
- If your business has experienced a significant decline in revenue or has had to downsize
- If you need to make substantial renovations or upgrades to the property
- If you have been a long-term tenant with a good payment history
- If you are nearing the end of your lease term
Arizona law generally upholds the terms agreed upon in commercial leases, so any modifications require mutual agreement between you and your landlord. So, when considering a rent reduction request, reviewing your lease agreement carefully is crucial.
Talk to an attorney for more clarity
It is essential to approach the conversation with your landlord with facts and figures and a clear understanding of your rights as a tenant. But before doing so, make sure to get advice from an attorney specializing in commercial real estate law. They can help you build a stronger case for a rent reduction.