We took a very informal poll and the numbers are in: Zero out of (pick a number – any number!) people actually enjoy negotiating leases for office space.
Still, negotiating the terms of a lease is one of the most important facets of commercial real estate. It needs to be done, and it needs to be done correctly to set yourself up for future success. Going into a negotiation unprepared gives you little chance of getting the best lease price and terms, so it literally pays to do your homework.
Donald R. Kenney & Company Realty knows there are some very competitive office space leases in the Columbus area. Here are some tips to keep in mind prior to discussing your lease with the landlord:
Plan Ahead – Don’t Procrastinate
If you already occupy an office space you’d like to keep, the time to act is sooner rather than later. Renegotiating a lease is one of those things you don’t do until you can’t put it off anymore – like renewing your vehicle registration. As a business owner, this is one task you don’t want to put off.
Approach the subject a year out – waiting until six months or less puts you at a considerable disadvantage. The landlord knows you don’t want to be out in the street, so they have all the leverage. Approach the subject early to even the playing field. After all, landlords like consistency and likely want to keep you right where you are and will do more to keep you there when there’s more time for you to explore other options.
Have a Knowledgeable Advisor
Chances are you’re not an expert on the Columbus commercial real estate market – that’s where we come in. Serving the Central Ohio region for 50 years, DRK and Company Realty has a long history of representing commercial real estate clients. We know market trends, whether your current lease is good or could be better, and what similar properties are getting throughout the region. This all adds up to more leverage for our clients, a better lease and a stronger bottom line.
Be Familiar With Your Financial Picture
The landlord will likely conduct a financial standing verification process to be comfortable in knowing a tenant will pay their rent. Don’t be caught off-guard here – check to ensure the company is on fine financial standing and is on good terms with all lenders, banks and credit card companies. If you know of any issue before the landlord looks into finances, let them know beforehand rather than letting them assume the worst upon discovering it.
Know What You Need
Go into a lease negotiation with a list of your most important needs. What are you hoping or demanding to have included as part of your lease terms? Do you require parking, utilities or storage space? These will affect your terms, so have a final list when it’s time to sit down at the table.
To learn more about how DRK can help you negotiate the best possible lease on office space, call 614-540-2404 or contact us online.