Renewing a commercial lease can be a complex situation for corporate tenants. It is also an opportunity to reflect on the current position of your business as a renter, revisit the commercial real estate market, and gather valuable information that can be used to negotiate a better lease agreement.
There are many benefits to fully understanding your options when a lease renewal is on the horizon. Positioning yourself as a well-informed corporate tenant armed with market knowledge, can help you negotiate additional amenities, receive a lower rental rate and, ultimately, secure your company the best deal possible for your company.
As experts in commercial brokerage services, the team at Ciminelli Real Estate Corporation has compiled a list of helpful tips to consider before renewing your commercial lease.
Start Negotiating Early
When considering a commercial real estate lease renewal, it is always best to be proactive. Evaluate your situation, determine what is and is not working for your business, and communicate with your landlord 9-12 months before your lease agreement expires. Your landlord will consider these points while reviewing your renewal and will be well aware that time is on your side – time for you to look for a new space if your concerns are not fairly considered.
Assess Your Current Space
Before making any sudden decisions, take time to analyze how your business is performing in its current commercial space. This is an opportunity to determine if the space is still suitable for your company and its future growth. Items to consider are location, amenities for employees, office configurations, and tech-enabled infrastructure. These can all serve as discussion points in the negotiation of your renewal. There is a possibility that your current landlord may incur these costs if it means keeping your company as a tenant.
Understand the Market Conditions
The commercial real estate market is dynamic, resulting in continuous changes year after year. It is important to be up-to-date on the current state of the market when looking to sign a new commercial lease or renew your current lease. Look at the market around you; are the rents similar to what you are currently paying for space? Are there other properties that offer additional benefits? Having this knowledge gives you the ability to be well informed while negotiating your current lease. If there is the potential to have some of these added benefits, lease renewal is the time to present them to your landlord.
Research Alternative Commercial Spaces
Even if you are comfortable in your current commercial space, it is always beneficial to educate yourself on other buildings and owners in the market. You may actually uncover an opportunity that is a better fit for your company. Availabilities, rental rates, and amenities have probably changed since you were last in the market, so it is worth the time to look at your options. During your research, you will become more knowledgeable about the commercial real estate market. Whether you stay in your current space or sign another commercial lease, this information can benefit your negotiation process.
Work with a Commercial Real Estate Broker to Negotiate
As mentioned in one of our previous blogs, do not underestimate the importance of using a broker to help you negotiate your commercial real estate lease renewals. In addition to sharing their market expertise, our real estate brokers are always aware of the current market conditions, opportunities, owners, and other brokers. They also provide you with leverage to get the incentives that you and your business deserve.
At Ciminelli Real Estate Corporation, we know how important the right office space is for your business. Our experienced team can add value to your commercial lease renewal process, negotiate any required terms, and answer any lease related questions.
Contact our commercial brokerage team today at (716) 631-8000.