3 Tips to Create Leverage in Your Lease Renewal

If your lease is coming up for renewal, don’t overlook this golden opportunity to reduce your operating expenses and hedge against the continuing uncertainty in today’s business world. Since real estate is probably your firm’s second or third highest business expense, your new lease can have a big impact on your ongoing success. Here’s how to tip the scales in your favor.

#1: Understand the value of your lease.

You mean more to your landlord than you think. When you consider factors such as lease term, required rates of return, cap rates, financial stability and gross income minus expenses – the “hidden” value you bring is considerable. Understanding these issues right down to the smallest detail can make a big difference in your ability to get a lower rate.

#2: Shift the risk to the landlord.

Unless your landlord has a substantiated fear of losing a valued tenant, they will go through the time-honored process of proving up the cost and headaches of relocating versus the value of staying put. How do you counter the consummate real estate pro and shift the risk of losing an income-producing client back onto the landlord? The key is to focus on getting detailed landlord and market knowledge – and developing a convincing dissatisfaction with the property or premises.

#3: Level the playing field. Hire a tenant broker.

Ask yourself: ‘how many leases have I negotiated lately’? Landlords negotiate leases on a daily basis. You don’t. In addition, commercial leases cover a lot more than the monthly amount due. They are often confusing, misleading and overly slanted against you and your interests. Working with someone who knows real estate and the terms of the lease as well or better than the landlord can be critical to your success.

Before you negotiate your next lease, be sure to contact Matt Edgar at 720.435.2191 for a FREE LEASE ANALYSIS, with ways to SAVE THOUSANDS on your office lease.