5 Tips for Negotiating a Commercial Lease
Once you’ve found the perfect commercial space for your business, the final step is signing the lease. It’s important to review the lease thoroughly and make necessary negotiations to ensure that both you and your landlord are satisfied with the terms of the lease. Before you sign anything, here are five tips for negotiating a commercial lease!
Budget Ahead of Time
Before you even begin looking at commercial properties, you want to set a budget and stick to it. In addition, decide on the non-negotiable elements that your property must include. This will help to keep you organized and stay on track to finding the perfect property for you. When negotiating your lease, stick to the budget you set as well as the non-negotiables.
Negotiate Asked Base Rent
Landlords will almost always ask for the maximum rent price that they think a tenant may agree to pay for a commercial property. To avoid being overcharged for your property, never agree to the initial base rent that the landlord is asking for. Though they’ll ask for an initially higher amount, landlords don’t expect anyone to agree. A good rule of thumb is to create a counter offer that’s 10-15% lower than the asking rent price.
Check Square Footage
When you are looking at commercial properties, take the time to measure the exact square footage of the space yourself. In Maryland, commercial properties are typically measured by square footage, so you may find that you are being overcharged due to an inaccurate measurement of the space. If you measure the space yourself and find that it’s smaller than the landlord claims, you now have a lower rent price.
Free Rent Specials
There are several commercial properties that offer free rent promotions. In some cases, the landlord may not want to lower the base rent payment because it could lower the amount that future tenants are willing to pay. However, they will compensate for this by offering free rent periods instead. They may offer you one free rent period per year on a three year lease contract.
Hire an Agent
A commercial lease is a very extensive, complex, and important document. The average person doesn’t have real estate expertise to know what each and every part of the lease means. For this reason, it’s a good idea to hire a professional to assist you in negotiating your lease. Commercial real estate agents have experience in negotiating leases, so they know how to obtain the best deals and will ensure nothing goes overlooked.
Want to find an Ideal Location for Your Growing Maryland Company?
At Newspace Commercial, we fully represent the tenant looking to find the perfect commercial space. Born from AJ Properties, an Anne Arundel County based commercial real estate firm, Newspace Commercial is designed to focus solely on Tenant Representation services, ensuring that you find your perfect business space, avoid mistakes, and negotiate the best deal.
For more information, visit our website www.newspacecommercial.com. To contact us, give us a call at (410)-218-1372!
