Five insider tips to negotiate a commercial lease. Number one understand the needs of the owner. Many times perspective tenants don't understand that the value of the lease directly impacts the value of the building. Number two the length of the lease is critical to the owner, and longer is better. This gives you the ability to negotiate in the earlier phases of the lease which leads to number three annual increases in rent. You can use the lease duration to increase later and take your breaks earlier on. Step 4 build out and repairs are generally not something an owner wants to take on so plan to complete these repairs on your own. Repairs specific to your business would not create a negotiation point however repairs generally improving the property could be another source of negotiating with the property owner. Number five repairs during the lease should be expected to be the responsibility of the tenant especially when they are smaller. Owners would likely be expected to pay large repairs. Make sure this is spelled out in your lease terms. Pay attention to your ability to bring traffic that could positively impact your neighbors. be proactive in offering to cross-promote other businesses. Keep in mind the owner of the building wants everyone to be successful. In a successful climate he can minimize or she can minimize vacancy and maximize the value of the building through higher lease rates.
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