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Whether you’re trying to get your startup off the ground or running an established business, properly negotiating the terms of your commercial real estate lease can have a dramatic effect on your bottom line. 

Here are six tips to help you get the space you want for the right price.  

Do your homework

Research what similar spaces in the area are going for - if you learn that other area properties are renting for much less, use that information to negotiate a better agreement. If the asking price for surrounding property is much higher, investigate potential issues there may be with the property you’re considering. Research the property owner as well, as you will want to make sure that your business location is properly maintained and is kept in good condition by the landlord.



You and a landlord should only present offers and counteroffers two or three times. Any more than that, and both sides can become nitpicky. Drawn out negotiations can also lead to resentment by both parties, which is not how a relationship between a landlord and tenant should begin.

Review the lease thoroughly

You may come across segments you don’t understand or were unaware of. Ask about these items and make sure you’re okay with them before you sign. Consider hiring a real estate attorney to review the sections in question.     

Don’t act too quickly

If you receive an ideal counter-offer during negotiations, don’t accept it too quickly. If you do, the landlord may think they made a poor decision and will over analyze the rest of the process.

Examine the termination and default clauses closely

Try to include a clause that protects you if you default on payments or allows you a certain amount of time to remedy a default. For example, you might ask for language that requires a written notification or warning prior to a default notification being issued.  Or you may request language stating that your rent obligation is terminated as soon as the space is released in the event of a default, instead of requiring that you pay the full amount left on the lease term. Also, negotiate penalties for terminating your lease early in case you decide to move before your lease is up.

Hire an expert

Contact the experts at DRK & Company to learn more about negotiating the terms of a lease. We have the knowledge, expertise, and resources to guide you through the process of making the best decision possible for you and your company. Tenant representation commissions are typically paid by the landlord, so there may be no up-front cost for this very valuable service that can save both time and money for your business!