Commercial Blog December 4, 2023

Tips for negotiating a commercial real estate lease

Here are some tips for negotiating a commercial real estate lease:

Know your leverage: Consider the demand for commercial space in the area and the landlord’s motivation to fill the space, as this can impact your bargaining power.

Research the market: Research comparable properties in the area to understand typical rental rates, lease terms, and any concessions offered by landlords.

Be clear about your needs: Clearly communicate your specific needs and requirements for the space, such as square footage, layout, and location.

Be flexible: Be open to compromise and consider alternative solutions, such as a longer lease term or a different location, to reach a mutually beneficial agreement.

Get everything in writing: Make sure all agreements and concessions are included in the lease agreement and get a clear understanding of the lease terms and obligations before signing.

Hire a real estate attorney: Consider hiring a real estate attorney to review the lease agreement and provide legal guidance.

Know the terms of renewal and termination: Consider the terms of renewal and termination, including the notice required, rent increases, and any penalties for breaking the lease early.

Review all costs: Be aware of all costs associated with the lease, including rent, common area maintenance fees, property taxes, and any other fees, and negotiate these costs if possible.

Remember that negotiating a commercial real estate lease can be a complex process, and it’s important to work with a qualified real estate professional for guidance and assistance.