As a tenant, every few years your commercial lease will come to an end. If you decide to renew, you have the opportunity to renegotiate with your landlord. Here are some ways to strengthen your lease renewal strategy.
Be a good tenant
Throughout your lease term, you should pay your rent on time, communicate effectively with your landlord and treat the property with respect. If you have a positive relationship with your landlord, they will be more likely to not only renew your lease but also to provide concessions during negotiations.
Hire a broker
We recommend you hire a tenant representation broker to assist in your lease renewal. Their support and expertise will make the process go much more smoothly. They will search for alternative properties, research the market, analyze lease terms and draft letters of intent on your behalf. Your broker can also help you negotiate for lower rent rates, free rent and more generous tenant improvement allowances. Typically, the landlord pays your broker’s commissions, but even if you end up paying the fees, you will likely see a generous return on investment by hiring a tenant representation broker.
Research other space options
Before going into negotiations, you and your broker should compare your lease to others on the market to ensure you are paying a fair rate. You create leverage in your negotiation by researching other spaces, having options available and being willing to relocate.
Approach your landlord early
Your lease will include key dates for your renewal. We recommend you start discussions with your landlord 12 to 18 months before your current term ends. By planning ahead, you will have time to negotiate favorable terms with your landlord or find a different space if you can’t come to an agreement.
Ask for concessions
Don’t just accept whatever terms your landlord puts in front of you. You can ask for concessions such as: