Sunday, April 23, 2017

Prepare to Negotiate Your Commercial Lease

Proper preparation will help you in every aspect of your business. 

Perhaps that's one of the reasons why we believe that having a business plan is so important. And just so we're clear ... it's not necessarily the business plan itself that's important, it's having gone through the planning process that will provide you with the ability to quickly respond in an appropriate way when the situation requires you to act!

In this POST, Dale Willerton and Jeff Grandfield from The Lease Coach provide a couple of great tips that will help you in negotiating or renegotiating a Commercial Lease. Thank you Dale and Jeff.

Dale Willerton


Jeff Grandfield

















Negotiating Commercial Leases & Renewals FOR DUMMIES

Commercial Leasing Tips for Commercial Tenants
By: Jeff Grandfield – The Lease Coach
For many business-owners, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While an entrepreneur focuses on marketing and managing, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.
As explained in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES (co-written with my colleague, Dale Willerton), tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for an entrepreneur as the amount of rent he pays will directly affect the business’ financial bottom line.
Whether you are leasing a new location for the first time or negotiating a lease renewal for your business, these are some money-saving tips for tenants:
Determine Your Bargaining Strength: Several factors will determine your bargaining strength with respect to negotiating a new lease or a renewal. These include the overall vacancy rate of the building and recent tenant turnover. Your unit’s size in relation to the entire property is also important. It is not only whether you occupy 1,000 or 5,000 square feet, but also what percentage of the building you occupy that counts too. In theory, chain stores and franchises should get a better lease deal than independent tenants, but this is not always true. Other factors to consider are your own business history as well as your industry – think that hair salons are plentiful while pet stores are not – therefore, a pet store should command more favorable lease terms.
Ask the Right Questions: Who really owns the property – a local family or a distant pension fund? Who were the last two tenants to move in – and out? Which tenants are not renewing their leases? How long has the anchor store leased in this property? Who is leasing month-to-month? Is the property currently for sale or expected to go on the market soon? Asking questions like these will help level the negotiating field. Most leasing agents volunteer only one-sided information.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to JeffGrandfield@TheLeaseCoach.com.

Jeff Grandfield and Dale Willerton - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com  or JeffGrandfield@TheLeaseCoach.com or visit www.TheLeaseCoach.com.
 


What's been your experience? 

Feel free to add your comments and thank you in advance
for sharing this post with those in your circle of contacts!

                                                                                           

QUESTION: Would having a BUSINESS COACH and MENTOR be Helpful to You? 
 IF the ANSWER is YES ... Take a look at our "NEXT Steps Program!

If you're looking for flexible and cost-effective Business Coaching & Mentoring, you'll like our “NEXT Steps - Program”. It's been created with you in mind, and provides 12 months of valuable assistance that designed to fit your busy schedule!  
For more information see:

"Option 3 – “PVS – NEXT Steps - Business Coaching & Mentoring Program” 
It's listed on our Website Registration page: