A commercial lease often lasts a good deal longer than a residential one, so it is particularly important that your lease terms meet your needs. When your commercial lease comes up for renewal, it gives you a chance to renegotiate its terms if your existing arrangement is not working for you.
When it comes to negotiating your commercial lease renewal, it pays to start the process early. This gives you more time to negotiate. It also gives you time to look for alternative leases if your landlord is unwilling to work with you and comply with your reasonable demands. When negotiating a commercial lease renewal, it may benefit you to do the following.
Develop a solid understanding of the market
You have options when it comes to leasing commercial space, and it may not hurt to remind your landlord of this – and particularly if you have been a great tenant. If there is no shortage of commercial space available for lease out there, your landlord may be more likely to meet your requests.
Know what your landlord stands to gain or lose
If you paid rent on time and took good care of your commercial space, your landlord may prefer to keep you in it, as opposed to having to find a new tenant. This takes time and effort, and your landlord loses money when the commercial space remains vacant.
Even if you feel relatively satisfied with your current space, ask yourself if there is anything your landlord might do to better adapt it for your needs. It may be quite some time before you have the opportunity to do so again.
