Touring Selected Space and Negotiating the Lease
Leasing commercial space is very comparable to getting a loan from a bank. Tenants should be prepared to share financial statements and to appropriately collateralize the lease transaction. Commercial real estate transactions, even for a seemingly “simple” deal, may take a considerable amount of time to successfully complete.
Having adequate time to identify, tour, design, price, negotiate terms on, construct or improve, and move into suitable commercial space helps shift negotiating leverage to the tenant’s behalf. Start the process 4 – 12 months before you need to occupy your new space.
- Start your needs analysis and discussion well before the need is estimated to commence.
- Engage and expert commercial real estate broker with proven experience and leverage their knowledge; we are here to help you starting with the needs analysis and continuing from occupancy throughout your lease term.
- Always have a solid back-up option at hand, especially in an improving real estate market. Being prepared to walk away is a very powerful aspect of successful negotiation.
- Engage a real estate attorney to provide counsel and revise the lease document.