Negotiating a Business Lease

Whether it’s an office lease, sales terms or a contract, negotiating is part of every small business owner’s life. But unless your former work experience required you to engage in negotiations, you may not feel overly confident in your negotiating skills.  Business owners can turn to the experts at 

Corporate Business Solutions for help with this daunting task. 

Our mission is to deliver amazing outcomes for clients based on professionally set expectations.  This means we solve the complex and unique business challenges our clients are experiencing in the multifaceted business world, including negotiating a business lease. 

If you’re considering negotiating your business lease soon, here are tips to help you improve your negotiating skills:

1. Perform due diligence. Know the average cost of the type of commercial space you’re seeking—retail, office or industrial. A commercial real estate broker can show you historical data for the region, and you can research prices online. 

2. Define your needs. Consider location, space, infrastructure, parking, storage, etc. Create a checklist of your needs and wants, specifying which are optional and which are essential.

3. Obtain professional help. Real estate brokers work for landlords and receive commission on the lease’s value, so while they can offer a lot of useful information, it’s also important to consult an unbiased professional experienced in commercial real estate.

4. Understand the law. Make sure you clearly define what uses the property is permitted for and that there are no zoning regulations or laws that could adversely affect your business.

5. Put it in Writing. Before viewing properties, make a list of questions to ask the broker and landlord. Never negotiate based on a verbal offer. Get terms in writing and have your attorney review them. Commercial landlords generally expect you to make a written counter-offer, too.

6. Discuss potential developments. If you need to remodel the property to suit your business, be sure you know what improvements can be made to the space, who will pay for them, who will oversee the work, and whether you’re expected to restore the space to its original state if you move.

7. Ask about subleasing. Getting the rights to sublease part or all of your space to another tenant protects you from breaking the lease if you must move unexpectedly. It also helps you cover costs if you’re leasing more space than you currently need in anticipation of growth.

To learn more and / or to schedule your complimentary appointment with the business consultants at Corporate Business Solutions, call us at 877-357-9366.