Lease Renewal Negotiations
In many situations, renewing your existing office or industrial lease may be your preferred option. The current building location might suit your employees and clients, and your existing space may work well for your business. Additionally, renewing your lease may prevent disruptions that often accompany relocating a company.
--- But, how do you know about other options available in the marketplace, and confirm that you're getting a competitive lease renewal rate from your Landlord?
--- How do you proceed if you need additional (or less) space when renewing your current lease?
--- How will you negotiate a competitive lease renewal package with an adequate Tenant Improvement (TI) Allowance to update your space with new carpet, paint or to make other necessary alterations?
Surprisingly, in many cases, the Landlord's renewal rates and terms offered to its existing Tenants may be less attractive than the rates and terms offered to new Tenants! This is because Landlords know that, statistically, the majority of Tenants prefer not to move, and that many Tenants assume their Landlord will give them a "fair deal."
Achieving Your Best Deal: When you renew your lease, the Landlord typically spends much less on TIs when compared to a new Tenant. The TI allowances provided to new Tenants can be significant, because new Tenants often require major reconfigurations to a space, as well as updates to carpet, paint, lighting and other finishes. However, if you don't need this level of build-out, the renewal rate offered to you by your current Landlord should reflect these lower costs. Additionally, your lease renewal means the Landlord will not suffer any uncertainty or loss of rents. The key to maximizing your leverage in this situation is to create a competitive environment, forcing your Landlord to make a renewal offer that recognizes the benefits your tenancy. Lower costs and lower risk (of vacancy) should translate into lower renewal rates for you!
Benefits of Skilled Representation: Landlords often discourage existing Tenants from seeking competent representation when it's time to discuss a renewal. Guidance brokers have extensive experience successfully negotiating lease renewals and expansions. We will develop a competitive environment making sure that your Landlord will compete for your business. And we accomplish this in a professional manner that does not damage your relationship with your Landlod. Additionally, in almost every case, your Landlord will pay our fees, just as they will pay the fees of a broker representing a new Tenant.
They don't want a Tenant 's broker to create this competitive environment. However, this is exactly where Guidance brokers excel!
You've been a good Tenant, faithfully paying your rent every month.
Don't you want to be treated with the same consideration as a new Tenant?