5 Tips for Commercial Lease Negotiations
Ready to move? Many clients are surprised at the time it takes to negotiate a commercial lease. At NAI Martens, our tenant rep brokers are ready to help make sure you get the best deal possible. Here are some tips:
1. Start Early
If you wait until your lease is about to expire you are at a disadvantage. If you and your landlord hit an impasse, you need to have time to explore other options and not have to rush into a less than ideal situation. For most clients, we recommend that you start thinking about a new lease at least 6 months before your current lease expires or before you plan on moving.
2. Get On The Same Page
Before you start thinking about a lease, get the entire team together to discuss the process. Make sure to include members of the financial team, the operations manager and any other key staff that can give you insight into what your needs are and what your needs might be in the future. Make sure everyone is on the same page when it comes to what you will require from the new space and how much you can afford to pay before you start the negotiations.
3. Have An Expert On Your Side
In a commercial lease negotiation, a tenant rep broker is a must have. At NAI Martens we have expert knowledge of the Wichita market and can tell you what is fair and acceptable in lease agreements. We work for you and are your advocate during negotiations. In nearly all cases, the landlord is paying the fee for the tenant rep broker’s services, so having us on your side won’t add to your costs.
4. Understand Your Costs
Carefully review all incidental costs you are being asked to pay to make sure that the total cost fits your budget. Any future increases in the base or operating rents should be clearly laid out. Don’t be afraid to ask for changes.
5. Be Prepared to Negotiate
In a perfect world, fair terms would be easy to agree upon, but in most cases, you are going to have to negotiate on one or more parts of the lease. Before you sit down with the landlord, make sure you know where you have flexibility and where you have to stand firm. By doing this, you will be able to firmly say what’s negotiable and what is a deal breaker. Be prepared to concede in some areas so that you can win with the points that are really important to you.