Navigating a commercial lease negotiation, particularly renewals, is difficult. And limited knowledge of the process and the market will give your landlord all the power at the negotiating table, particularly if you place convenience over cost.
Tenant CS are commercial lease negotiators who work exclusively for tenants, creating the leverage you need to extract savings and secure flexibility. Even if you have your heart set on renewing, we'll still explore market options. This creates competition and the impression that your landlord could lose you giving us greater ability to negotiate:
Incentives – When it comes to commercial lease renewals, incentives offered are generally 50% less than what the landlord would propose to a new tenant. So, convincing the landlord that you may leave will help you negotiate more favourable terms, including a higher incentive.
Asking rent – Your landlord uses the rent you're currently paying as a benchmark for future levels. So, to bring it in line with market averages (especially in softer markets), we present real relocation opportunities to you. This creates leverage and means you know the asking rent for comparable spaces.
New lease documents – Do you want to start your renewed lease term using your old lease as a base? Or, would you prefer it was updated to be more tenant-centric: to include new COVID-friendly clauses and address any headaches you experienced over your last lease term (e.g. air conditioning performance and exorbitant outgoings). Tenant CS will help you start from scratch.
Flexible lease terms – Post-COVID, feelings of uncertainty are commonplace. And that couldn't be truer than when it comes to workspace planning. Flexible leases allow businesses to upsize or downsize, review rent, sublease extra space or break lease if market conditions change. Tenant CS listen to your needs and help design lease terms to suit your business and plans.
Make goods – A 'make good' is a clause in most commercial leases that requires the outgoing tenantto return a property to its original condition in readiness for the next tenant. But it doesn't always have to be at your expense. Negotiating end of lease costs correctly will benefit your P&L's in the short and long term (just ask your CFO!).
Commercial lease negotiations require focus and experience. And even small mistakes can drive up costs. So, you must do your due diligence before you sign on the dotted line (this checklist may help). In any case, engaging a tenant representative will level the playing field and save you time and money. Get in touch with a commercial lease negotiator from Tenant CS today to see how we can help you!
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Learn about how we’ve helped our clients with their commercial lease negotiations.