Guidelines for Commercial Property Lease Negotiation
The current property market has encouraged many people to be involved in commercial lease negotiations. It has resulted from many businesses shifting from the buildings they are in to new and better premises. Many activities in the negotiation process are controlled by the landlord because the marketplace is the only place where you can find commercial properties for lease. Enough preparation has to be made in order to protect the landlord’s position in the commercial lease negotiation.
The commercial real estate agents will still earn a good income despite the type of property that they are leasing. It is important to remember that the best real estate agents are those that are very familiar with the lease negotiation. Apart from that, they should understand how negotiations affect the value of the property. With the prevailing market conditions, it is important to get the lease optimized to the cash flow need of the landlord. Ensuring this will offer you the advantage of obtaining a great investment.
It sometimes becomes difficult for landlords to lease premises especially if they have set harsh conditions on the premises. It is normal for empty buildings to wear out very fast and this pushes away potential customers. A landlord who has newer properties will draw more customers. Anytime a tenant shows interest in any vacant premises then the landlord should show a genuine interest in a market structured lease package.
We know the value of a property through its structured cash flow over a period. The landlord can make changes in the rent review so that the value of the property is raised. Ensure that you set the occupancy rules before you leave the office and inspect the premises to avoid the tenant arriving at your doorstep and asking to see the premises.
The landlord and the tenant are both victims of the lease plan. The landlord should determine the dangerous dates of moving and what will provide the least amount of business disruption for the tenants. The period that the premises will be under use is dictated by the tenant.
It is important for the tenant to outline the requirements of the property that they need to lease and pick a property that suits the requirements. It is important for the tenant to identify the differences using a checklist.
Most clients are flexible enough to choose the buildings that are improved. During the early stages of the negotiation, the tenant should bring forward such issues.
The tenant needs to know that capital could be enough to secure the building. The negotiation should be based on the current available space and any expandable spaces, design requirements.
If you want to be successful in the lease negotiation, you have to be you have to make the right preparation. It will tune your focus to the tenant and the landlord to achieve an equitable and fair lease outcome.