Tips For A Successful Commercial Lease Negotiation
When it comes to commercial lease negotiation, there are actually lots of ways on how you could succeed with it. There are numerous tenants who admit wholeheartedly that they are not that good in terms of negotiations and because of that, they often submit to what the landlord asked. Well after reading this article, you will certainly find a way on how you can make the deal be on your favor and make huge savings in the long run.
Tip number 1. Determine what is motivating the landlord - there are numerous types of landlords similar to pension funds, financial institutions, local developers as well as small family property owners. Figuring out or determining who the landlord is and their long term goals is a must for you to succeed negotiating with them.
A few of the landlords are in favor of security that comes with national tenants while other landlords like to make the most of their cash flow to give you an example. There are some landlords on the other hand who participate in flexible tenant incentives such as allowances, free rent and the likes but, this isn't always the case.
Tip number 2. Ask questions - it doesn't mean that it is okay to ask whatever question you want, because being watchful in what you say is still important. Ask for instance which tenants have moved in or out recently, look for those tenants and ask some questions like what makes them to move in or out and so forth.
Tip number 3. Avoid emotional decisions - no one wants to be taken advantage so make sure that you keep your emotions at bay when you are having Commercial Lease Negotiation San Diego CA negotiation.
Tip number 4. Walk away from negotiating table - by the time you have invested several days, weeks or even months negotiating on a specific site, it becomes hard to walk away from negotiating table but more often than not, this is when real negotiation starts. Some of the best deals that tenants could get was after they have walked away or the deal fell apart.
A number of the tenants can afford to walk away from a not so good deal but a very few is able to afford to have 5 or 10 year mistake. Prior to signing up the Formal Lease or Offer to Business Setups San Diego CA Agreement, it will be wise if you are going to take a cool off period for several days, especially if you feel unsettled about the deal being recommended.
Be sure that you keep these commercial lease negotiation tips and strategies in mind if you are really serious to succeed in having a good deal.