12 Oct 2018

How to Bargain For a Commercial Lease to Favour You as the Tenant

How to Bargain For a Commercial Lease to Favour You as the Tenant

If you are given terms verbally by your landlord or leasing agent, ask for a written document. The initial terms are important because they will determine your life will be as a tenant in that particular property. If you fail to notice some of the clauses in the commercial lease Brooklyn that can make your life as tenant miserable, you will endure it through the lease period.

It is important to understand terms and hence the importance to have them in writing.  You can use the document to research or even consult a tenant representative who can advise you accordingly. Negotiating for any commercial lease is not easy, and you still have to do it when you want to renew. Here is how to get a commercial lease that favours you:

Hire an experienced real estate broker

Most tenants are afraid of having a middleman and prefer to go straight the landlord. While it may seem like a good idea especially if you are thinking of saving money, there many other incredible points of working with a real estate agent. Even the broker who looks he does not have much to offer, he or she knows a lot about leases and real estate market more all tenants.

Negotiate

A commercial lease allows you to negotiate. If you are lucky to have the bargaining power, you will get a good deal. It depends on how much the landlord is in need of a tenant.

Research the market

Without enough knowledge about the local commercial rents rates, your bargaining power will be down. Talk to friends or family in business and get to know how much they pay. This will enable you to know what is fair and what is too high.

Never accept the initial offer

The first offer is always the landlord’s idea, and it favors only the property owner. If you have been in the business, you know this is a standard lease contract and you should not sign it. Take it to your attorney or broker before signing and agreeing to the terms stated.

Identify the deal breakers

Go into the bargaining with a set of priorities. This means you know what you want and what you can give up on. It will help you make the landlord has won while you know deep down in your heart that you have gained something that you value.

Do not be afraid to start all over again

Do not hold on a deal too much. Be ready to forget it if does not seem to favour you in any way. If you want the deal desperately, you are most likely to end up with a commercial lease that does favour you with much. The party will take advantage of your need to control the whole contract.

Talk to the property owner and let them know what you want. But, everything has to be in writing. This will ensure that you both know what you are getting. It will remain as evidence throughout the lease period. Unlike a word of mouth that someone can counteract, the written lease agreement will last for years.

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