Bowsers are experts in negotiating the best possible commercial lease renewal. Commercial lease renewals can be very complex, and the first offer made by your landlord will rarely be the best. Negotiating great commercial leases and preferential rental rates is an art form, and you should take as much time as is needed to handle these discussions.
If you're in the middle of protracted lease renewal negotiations, take time to review our top tips to help expedite the process.
What Is A Commercial Lease Renewal?
Many commercial tenants have to face the prospect of their lease expiring, and their landlord will propose a new rent and possibly request different terms for the lease. It may be tempting to forgo any negotiations and just accept the new rent under the existing lease terms - or any amendments proposed by your landlord. However, entering into negotiations could win you a far better outcome than the initial offering.
The first action any tenant should take when coming towards the end of a lease is to consider whether remaining in the property is the best option. It's always a good idea to check out all other available opportunities, and this information can also be extremely valuable for any lease and rental negotiations that take place with your existing landlord.
How To Negotiate A Commercial Lease Renewal
You need as much leverage as possible within any lease renewal discussions, so the following tips may help:
1. Begin negotiations for your new rent and lease at the earliest opportunity, ideally around a year before your lease expires.
2. During this period, create a document detailing all the pros and cons of your current workspace and identify alternative options that could be considered.
3. Get in touch with owners of all alternative locations for lease proposals, as this detail can be used to back up your discussions with your existing landlord.
4. Lay out all the above data in a schedule, so it will be quick and easy to compare the alternatives. Detail any inducements and all technical building differences. Remember, no detail is too small.
5. Think carefully about how you will be using your current workspace over the next few years. A standard 21-year lease term may be far too long, and you may need to request greater flexibility from your existing landlord.
6. Take all your evidenced data and schedules along to any negotiations with your existing landlord in order to come up with the best deal to suit your business requirements.
Bowsers Solicitors are specialists in negotiating lease renewals that work for clients. Get in touch for more details.