7 Tips for Negotiating a better lease
Whether you own a small office building, warehouse or retail strip center, your business depends on your ability to rent out your space and craft a lease that clearly lays out the terms agreed upon by landlord and tenant.
Here are 7 tips to help you better negotiate real estate lease
• Know your market. Research the competition, and familiarize yourself with what others are charging for rent.
• Know your property. Be aware of the actual operating costs of your building, such as taxes, insurance, trash collection, repairs and utilities.
• Make sure the lease clearly sets forth the obligations of each party to pay building costs or build these costs into your asking rent.
• Confirm what the tenant will use the space for, and ensure that such usage is permitted and that there are no zoning regulations or laws that would prohibit it.
• Determine what improvements are needed for the space as well as which party will pay for any necessary build-out.
• Put it on paper. Get tenant offers in writing. Have an attorney review the offers and write (or at least review) the lease.
• Hire a professional. Probably the best tip is to work with an experienced commercial broker, who can market your property and help negotiate lease terms.