A recent article in the Boston Business Journal makes some good points about negotiating your lease as a business owner. The most interesting observation is that business owners may be great negotiators, but miss out because they don’t treat their lease negotiations as a business deal.
What if you could turn your lease renewal into a money-saver for your business, just by accessing the relevant information that could allow you to negotiate better terms?
The problem is where to start. The following are some possibilities business owners may want to consider:
• Tenants often assume they will have to pay for representation, but industry standards dictate that landlords will often pay brokerage fees for new acquisitions and renewals. Having information from a source like a broker can be crucial to getting a good deal.
• Termination options should be carefully reviewed as they provide flexibility in case you need to move the business space during the term of the lease.
• What if you’re considering expanding your physical business? A Right of first refusal for expansion space could be useful if you will be expanding during the term of the lease.
• Businesses may see themselves as competing for office space, but landlords will also be interested in attracting quality tenants. Concessions include incentives like moving allowances, tenant improvements and rental abatement.
• You may not be aware that you can save yourself in excessive rent hikes by querying the amount of operating expenses that are passed on to you as a tenant by negotiating a cap or ceiling to the tenant portion of commercial real estate operating expenses. When negotiating a cap on operating expenses, it really helps to consult with a local market expert who can determine what’s standard.
Attorneys with Industry Experience
The attorneys at Valanzola Law Group have significant expertise in real estate law, with substantial industry experience representing landlords and tenants in numerous states across the country, leasing space in shopping centers, mixed use buildings and office buildings. Edward Valanzola has been practicing law for over 35 years with a focus on real estate, including commercial leasing and shopping center development. Matthew Valanzola has over ten years’ commercial real estate industry experience. We understand the perspectives of tenants and owners alike and can offer expert advice to support you in proceeding with your real estate negotiations or agreements. Please contact us now to see how we can help.
For more on the Boston Business Post article, please click here.
