There are many good commercial lease agreements on the market. There isn't any reason to settle for a poorly written commercial lease agreement.
Commercial leases can be long and complicated documents. It is important to review your commercial lease agreement before signing, particularly if you will be responsible for any repairs or maintenance of the property you intend to rent.
When negotiating a commercial lease, it is important to remember that the landlord wants you as a tenant, and you want the best deal possible. If you don't understand something in your commercial lease agreement, ask your commercial real estate lawyer for help. A good business lawyer can help make sure that you are getting a fair deal in your commercial lease agreement.
Negotiating With a Commercial Lease
When negotiating a commercial lease, there are a few key things to keep in mind. Here are ten steps to follow:
1. Understand the Lease Terms
Before you even begin to negotiate, it is important that you understand all of the terms of the commercial lease. This means reading and understanding every line, including the small print. If there are any areas that are unclear, be sure to ask your commercial real estate lawyer for clarification.
2. Know What You Want
It is also important to know what you want from the lease negotiation. What are your priorities? What is non-negotiable? By having a clear idea of what you want, you will be better equipped to negotiate with the landlord.
3. Come Prepared
In order to get what you want, you need to come prepared for negotiations. This means having a strategy and a clear understanding of commercial leases.
You also need to be prepared to back up your requests with examples from comparable commercial leases in the area, perhaps completed by other commercial real estate companies.
4. Begin With a Stronger Position
A good negotiation starts with a stronger position. Start negotiations with points that you think will be difficult for the landlord to give up or that they are less likely to budge on.
Once you have successfully negotiated these points, it is then easier for you to move on to more important issues or ones that are merely personal preferences of yours but not crucial terms of the lease agreement.
5. Be Flexible
During leasing negotiations, it is important not just to know yourself and your priorities but also to understand the commercial real estate market and how flexible you can afford to be. If your commercial real estate company or business is in a strong commercial real estate market, it may be worth compromising on certain points in order to get a deal done.
But equally, commercial markets may change, and when they do, commercial leases will often require renegotiation. There are no hard rules here, but if commercial rents go down in an area, commercial landlords may be more open to negotiating commercial leases that were signed at higher rates.
6. Be Realistic
Nobody likes a pushover, and commercial landlords aren't going to like someone who comes into negotiations all sweetness and light with unrealistic expectations about what kind of lease agreement they should get.
It is important not just to know your own commercial real estate business and commercial real estate market inside out but also to be realistic about what you can achieve in negotiations.
7. Take Time to Consider Offers
Just as importantly, don't rush into signing a commercial lease agreement without taking some time to consider it fully - even if an offer from the landlord is very tempting.
Rushing into things can often lead to making poor decisions so take a little time to digest what has been offered and discuss it with your colleagues, employees, and family. The commercial real estate decision should not be taken lightly.
8. Keep Things Positive
Always try and keep the tone of negotiations positive - remember, you are both trying to get a deal done after all! Being hostile or aggressive is never likely to be helpful, so it is important to stay positive and constructive.
9. Focus on the Long-Term
Another commercial real estate tip is not to focus on what's immediately in front of you but to look ahead into the future as well - particularly when it comes to commercial rent negotiations.
Think about your commercial real estate business five or ten years down the line and make sure that you are happy with how the commercial lease agreement will affect its commercial rents for this time period.
10. Know Your Rights
Finally, commercial leases are often full of fine print but don't let this put you off or scare you away from negotiating commercial leases yourself if necessary, always remember that while a commercial landlord may know the small print inside out, you have the commercial real estate law on your side.
A good commercial real estate lawyer will be invaluable in these situations to help you navigate any tricky clauses and ensure that your commercial lease agreement is fair for your business.
Commercial leases can be complex and difficult to negotiate, but with a few commercial real estate tips under your belt, you should feel more confident when entering into these types of negotiations.
Remember to stay positive, realistic, and focused on the long-term, as well as understanding your own rights under commercial lease law. With these things in mind, you are sure to have a successful negotiation.
If you are looking for commercial real estate lawyer services, then please contact us. We are business lawyers who specialize in all areas of commercial law, including commercial leases. Our commercial real estate lawyers will be happy to help you get the best deal possible for your business.