If you use leased commercial space to operate a business in the Tempe region of Arizona, you probably want to make sure you get the best deal. After all, the amount you spend on real estate will have an effect on your bottom line. Landlords are also interested in protecting and enhancing their own bottom lines by charging tenants as much rent as they can get by with. Finding a mutually beneficial middle ground can be a challenging endeavor for business owners in the area.
One thing that comes as a surprise to some business owners is that you can actually negotiate your rent in many cases. This can put at least some measure of control right into your hands as a tenant. You need real estate and the property owner needs income; this can set the stage for successful negotiations. Below are a few tips to use when you are negotiating a potential lease.
Asking price: Expand your knowledge of the region’s rental rates on similar properties. This can help you identify when a property owner is asking too much.
Vacancy protection: In a business complex, neighboring tenants can have a positive or negative effect on your success. Negotiate vacancy protection terms should the building’s mix of tenants or lack of tenants compromise your business.
Usable space: When negotiating a commercial real estate lease, be sure to find out if your usable space matches the listed amount of space. In other words, make certain you have access to the amount of space for which you are paying.
Attorney advice: Finally, it is never a bad idea to talk with a lawyer to strengthen your understanding of commercial leases in Arizona. This will also provide you with a legal advocate if your landlord violates your lease during your business relationship.
Source: MultiBriefs, “Negotiating commercial leases: Is the asking rent too high?,” Dale Willerton and Jeff Grandfield, Oct. 05, 2017