Negotiating a favorable commercial lease renewal

| Feb 9, 2021 | Commercial Real Estate Leases | 0 comments

A Florida commercial lease term is often longer than a residential one. When the time comes to renew your commercial lease, you may want to use it to try to negotiate more favorable terms. Market conditions change quite a bit from year to year, so you may find that the lease terms you agreed to when your lease first took effect no longer suffice.

Losing you as a tenant may mean financial losses for your landlord, so he or she may be open to negotiating. It may serve you well to start the process several months before your lease goes up for renewal. When doing so, consider taking the following steps.

Show your knowledge

You want to demonstrate that you are a well-informed tenant who knows the market. The more you understand about the process and market, the lower the chances of your landlord taking advantage of you.

Explore your options

Even if you are set on staying in the commercial space you currently occupy, it may not hurt to see what else is out there. At the very least, doing so may help you develop a better understanding of the current market and how far your budget might stretch, should you move.

Assess your current space

This is also an appropriate time to assess your surroundings and figure out how they might better accommodate your business. Your landlord may, depending on circumstances, be willing to make some of these accommodations to avoid having you vacate the space at the end of the lease.

Keep in mind that if you have been a decent tenant, it is likely in your landlord’s interests to keep you where you are. This gives you some negotiating power. Finding another tenant takes time and money your landlord may not be able to spare.