No matter what industry you are in, a lease can be a critical part of your business. It not only adds to your overhead expenses, it can also be the cornerstone to any facilities that you may operate in. With that in mind, it is incredibly important to make sure you have terms that are favorable to your business in the lease.
It is also essential to negotiate favorable lease terms and to build a good working relationship with the landlord, as most commercial leases stretch for years at a time.
Before you embark on your own, consider working with a seasoned commercial real estate professional for the following reasons:
1. Market Knowledge
Agents are familiar with the market because they work in that market every day. It is the same as the expert knowledge you have in your particular industry or field. Market knowledge is key to a negotiation because agents know —based on what is happening in the market with additional deals— what the negotiation range can be or how low the rate can go.
While knowing what other deals have happened or are happening is one thing, the key to the agent is that he has the brokerage behind him that can help to extract data to back up the market numbers that he or she is referencing.
2. Familiarity with Building Needs
Along with market knowledge also comes the experiences of the agent. Most agents have worked with multiple different types of businesses and each different type of business may require certain amenities in their spaces.
This is especially helpful for new businesses who are expanding, as they may not realize they need certain amenities that can be negotiated into the contract until it is too late. The agent can go over their needs and point out to them that they may need other things in the future and should ask for them up front.
3. Access to Additional Listings and Contacts
If your lease is up for renegotiation, one option may be to renegotiate or the other option may be to find a different space for your business. Having an agent on your side to help with negotiations can also help if you are thinking about making a move, as well. Being able to assess your needs and then deliver on those needs is what an agent does best —so while in renegotiation the agent can also be searching for possible new locations that will fit your needs as well as the terms you are looking for if a new agreement cannot be reached.
4. Time Saving
As a business owner, there are many things to worry about. Working with an agent will allow someone else to do the heavy lifting when it comes to renegotiating your lease. It will allow for you to state what you need and then just listen to what is being offered from the agent, as the agent utilizes their breadth of knowledge to renegotiate the best deal possible for you.
Whether you’re negotiating a lease or need help finding the right space, connect with an agent today to discuss how they can help.
Credit; Coldwell Banker Commercial.