Commercial leases often come with longer lease terms than residential ones, so when the time comes around to renew yours, you may want to ask yourself whether your current arrangement meets your needs. If not, you may be able to negotiate better lease terms that save you money, time or both. You may also be able to work with your landlord to come up with renewal terms that prove advantageous to both of you.
What might help you negotiate a more favorable commercial lease renewal?
Knowing the market
Showing your landlord that you understand the local market and its fluctuations lowers the chance of him or her trying to pull the wool over your eyes. Make sure your commercial landlord knows that you recognize there are other options out there. The more you understand about them, the stronger your bargaining power may be.
Recognizing what is at stake for your landlord
Keep in mind that it often serves your landlord well to keep you in your existing commercial space. That way, the landlord does not have to risk the space staying vacant while he or she tries to find a new tenant.
Assessing how well your space accommodates you
If you like your commercial space but believe it could serve you and your business better with some adjustments, now is the time to ask about them. If not accommodating you could mean losing you as a tenant, your landlord may have an inclination to make things work.
The more you understand about your options, the state of the market and what your landlord could potentially lose if you leave, the better the chances of you winding up with a favorable commercial lease renewal.
