Your tenancy is valuable to a landlord and maximizing competition for yours is essential in driving down your occupancy costs. Regardless of the condition of the commercial real estate market, there are three main things you can do to boost your leverage when negotiating with a landlord.
Increase Commercial Real Estate Options
It pays to shop around among different properties to find several good deals. The key is to let landlords or landlord agents know that you are exhausting all options in the search for the best lease terms. This works particularly well with renewals. The landlord already knows that you are a stable and reliable tenant. Be frank that you are researching options and do so. There may be a more optimal property available so it pays to research. If you can cast enough doubt that you are not a "lock" then the landlord may be more amenable to concessions and cost reductions.
Timing is Everything
It is best to begin looking for a lease within a comfortable time range that won't put you in a crunch. For example, it is not wise to approach a landlord regarding a renewal too close to the lease end date. The landlord will have the idea that you do not have enough time to negotiate a better deal and will hold firm. Approaching the landlord early on is better, as he gets the idea that you will have adequate time to look elsewhere if the renewal is not suitable. Negotiations involve other items aside from rent, like concessions or build outs.
Use a Broker
A good commercial real estate tenant representative maintains distance from the lease negotiations while being represented by a viable negotiator. By using a broker you will be able to explore many commercial real estate options that are currently available. Brokers typically have the knowledge and experience to obtain the best deal from a landlord. Let the broker cut through the fluff and deal with the negotiations.
