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How to properly negotiate a commercial lease agreement

On Behalf of | Aug 3, 2021 | Eminent Domain |

Florida is a great state to start a business in. As you know, it can take a lot of steps to get a new company off the ground. One of these is finding the right space. Before you sign anything, check out these tips to help you negotiate your commercial lease agreement.

Have more than one place in mind

When you’re looking for a commercial space to lease, it’s great to have options. It can also help strengthen your negotiation skills. If you have a couple of places in mind, it’s easier to walk away from negotiating a lease that isn’t working out in your favor.

Don’t be afraid to make a counteroffer

One of the most important parts of commercial leases is rent amounts. When you hear your potential landlord tell you how much rent will be, don’t be afraid to do a little negotiating.

As a rule of thumb, experts recommend making a counteroffer that’s 10-15% lower. At worst, they’ll decline your counteroffer. Most likely, they’ll counter your offer with another counteroffer. If you handle these negotiations calmly, you’re likely going to walk away with lower rent payments.

Find out if you can get lower rent with a longer lease

Many landlords dread owning empty properties. With that in mind, you could have negotiations work out better if you sign up for a longer lease term. Since this provides peace of mind for a landlord that you’re sticking around, they might offer you lower rent.

Check out usable space in-person

Another vital factor in any commercial lease is the amount of usable space you have. As tenants come and go, the amount of usable space in a building can change. Since your rent gets based on a building’s space you can use, it’s imperative to make sure you’re getting exactly what you’re paying for.

Finding the right commercial property is an important concern for business owners. Follow the previously mentioned tips, and you should soon find the perfect place to set up shop.