Renegotiating or renewing a commercial lease in Atlanta can be a daunting task.
It’s not just the way things are, though. Tenants have rights, too. You don’t have to agree to pay more money. Instead, you can negotiate the price with your landlord.
If this sounds intimidating, read on to find out what to take into consideration before signing a lease renewal agreement.
4 Things All Businesses Need to Consider Before Renegotiating a Lease
Instead of automatically signing a commercial lease agreement, you should consider these things first.
1. Research Market Prices on a Regular Basis
Market prices rise and fall all the time. Sometimes you will have to pay more to rent a space. Other times, you be able to pay less. It depends on the economy, market prices, and location.
It’s important to stay up to date with current prices to ensure you’re getting the best space for the money you’re going to invest.
Not doing market research can lead to overpayment, which means the loss of money which could’ve been invested back into your company.
2. Remember Landlords Have a Lot Invested, Too
Another reason why renewing or renegotiating a lease can seem so daunting is you often have so much invested. It is your business, after all.
It’s important to keep in mind that landlords have a lot invested, too. If you don’t renew your lease, the landlord has to find a new tenant. It doesn’t always happen overnight. In fact, sometimes it can take months to find a new tenant, which means they could end up losing money if they don’t have anyone to pay the rent.
Remembering this can make it a little easier to tackle the negotiation process.
3. Does the Current Space Fit the Needs of Your Business?
When your business has been in a space for a few months or a year, you get to see how well it fits your needs. You might notice the space is actually too small and need to invest in something larger. Or, it could be too large, in which case you’d want to downsize in order to save some money.
Take size into consideration before the negotiation process. Know whether it’s best to stay or if this is a good time to find someplace new.
4. Hire a Broker to Take Care of the Process
If the negotiation process seems too daunting or complicated, or there simply isn’t enough time to do the necessary research, it might be best to simply hire a broker to take care of lease negotiations.
A broker can research the marketplace and see if there are any better options available. Then, they can create a plan to help their client get the best lease terms possible by negotiating with the landlord themselves.
In addition, a broker will be aware of other concessions available, such as free rent and tenant improvement dollars provided by the landlord. A broker can also position your real estate to work for you as your business grows by including Right of First Refusal or early termination language into the agreement.
This takes a tremendous amount of pressure off of a company, in addition to saving them a lot of time.
Do Plenty of Research to Protect Your Interests and Your Bottom Line
Running a business isn’t just about marketing and finding customers. It’s also about protecting your business’ interests.
Yes, rent will likely have to be paid (unless your business can afford to purchase real estate). However, this doesn’t mean you have to lie down and accept whatever numbers are thrown your way.
Rent can and should be negotiated, especially when it’s time for a lease renewal. Doing so can help your company save money and be in a space which serves your best interest. Overall, this will have a positive impact on your bottom line.