Commercial real estate tenants, by definition, tend to be businesses. As such, they are used to signing various business contracts with suppliers and clients on a regular basis. Their lease should be approached no differently from any other contract, but too many businesses - particularly smaller and medium sized ones - fail to enter negotiations with landlords in as detailed a fashion as they should.

1. Talk to an Expert

Most decision makers have little or no experience with the intricacies of commercial real estate lease negotiation, while commercial landlords' business depends on such negotiations. To lessen the inherent imbalance in entering contracts of this nature, it is highly recommended that you hire a tenant rep broker.

2. Be Prepared

As with any negotiation, ideally a happy halfway point should be reached between each party's wants and expectations.

The best way to get more of what you need is to know not only as much about your own needs and expectations as possible, but also about your counterparts' as well.

3. Use the Template Contract as Nothing More Than a Starting Point

Landlords will most likely have a frequently used contract template for their clients. The obvious first step is to read the contract, but feel free to ask for amendments wherever you deem appropriate. Never be afraid to ask for anything you want to include.

4. Maintenance and Other Fees

When it comes to fees, many tenants are stuck in an "is it included or not" paradigm. When negotiating  commercial real estate contracts, you should not be afraid to set contractual limits to these costs. If the landlord tells you that HVAC fees 'are usually around x-dollars/month", insist on including a clause that protects you if electric costs are unexpectedly higher than $X.

5. Non-compete Tenant Clauses

Depending on the type of business a tenant is in, it may be wise to include a provision that prevents a landlord from leasing to a competitor within a given property. In some cases, as with Medical offices or other office buildings in a mall, it may be beneficial to have 'competitors' leasing in adjacent locations. Know what is best for you.

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