September 18, 2018

3 Commercial Lease Negotiating Tactics

Finding the right commercial property for rent that meets the needs of your business is a difficult endeavor. It’s worth it to invest the necessary time and money needed to find a broker to help you every step of the way. Working with the expert brokers at Rakow Group can help you locate the right property and receive a great deal. Office space real estate is more than just a place where you work. It’s the home base of your business and the foundation for future success. Once you have located a space you are interested in leasing, you will have to negotiate the lease terms with the person or business leasing the space. This can be a big challenge to overcome. It really helps to have someone knowledgeable and professional to help you during the negotiations. Below, we will discuss 3 commercial lease negotiating tactics that our brokers will utilize to help you get the best possible lease terms.

1. Understand the Different Lease Options

So you’ve found the commercial property for rent that you want to house your business. That’s all well and good, but you can make some big mistakes during negotiating your lease if you aren’t familiar with all of the different lease options. You can go with a gross rent lease, which means you will pay a single amount to your landlord that covers everything including incidentals. A net lease is another about where you will pay base rent plus either property taxes, insurance, or utilities. A percentage rate lease means you will pay base rent plus a percentage of your sales. Keep all of these options in mind and choose what works best for your business.

2. Extensively Research the Property

Doing your homework is a great way to gain some leverage during negotiating a lease for commercial property for rent. Check out the other tenants in the building. See what the building traffic is like. Look for red flags regarding your future landlord. The more you know, the better prepared you are to get the best deal. A broker at the Rakow Group can help you extensively research a property and give you great advice for negotiating the best lease.

3. Check Local Market Rents

The last tactic to use when negotiating leases for commercial property for rent is to check out what similar properties are going for in the local market. That way, you will have a realistic idea of what you should be paying and what the lowest possible rent can be. The more information you have, the better deal you can get.