How to Renegotiate a Commercial Lease
2 min read
Commercial real estate lease agreements act as a binding contract between the lessor and the lessee and typically consider various factors such as the rent amount, length of the tenancy and tenant obligations. However, although uncommon, this does not mean there isn’t room for negotiation after the fact.
Renegotiating a commercial lease is possible when done right. Here’s how you can change the terms of your lease agreement effectively.
Do your research.
There is nothing worse than going into a renegotiation unprepared. It is in your best interest that you are aware of what’s out there and what you need to satisfy your business needs. This will show the lessor that you are knowledgeable, organized and have a clear goal in mind.
Start as early as possible.
Renegotiating a commercial lease agreement usually isn’t a walk in the park—that is why starting as early as possible is essential to avoid a delayed tenancy. Staying on top of changes in the market will better position you to renegotiate your current lease terms.
Communicate frequently with the lessor.
Ensuring that you have a direct line of communication with your lessor will help to make the process as seamless as possible. It is often best to communicate in person or via phone to avoid miscommunication when negotiating the lease.
Have a backup offer.
It is not uncommon that the lessor will be unwilling to accept your initial offer while renegotiating—making it essential to be flexible during the process. Ensure you have a backup offer or room to negotiate to satisfy both parties.
Preparation is key when it comes to commercial real estate renegotiations. A strategy will help you secure a lease that suits your business best.
Reference
Blum, M. (n.d.). How to Renegotiate Your Commercial Lease in 8 Steps. How to renegotiate your commercial lease in 8 steps. Retrieved November 28, 2022, from https://620nlasalle.com/blog/how-to-renegotiate-your-commercial-lease
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