As a corporate real estate tenant, your property owner values your tenancy and, therefore, wants to keep you in the building. At the same time, you must do what is best for your company by creating a market for your tenancy. The basic goal is to drive your real estate costs down by creating competition between potential landlords, allowing you to choose whichever landlord gives you the best deal.

The main reason why creating competition in corporate real estate is important is the price. If you pay your rent on time every month, your landlord knows that you are a good tenant to have. The landlord also knows that not every tenant will provide the same benefits, which forces the property owner to make a decision. Once you make it known to your current landlord that you are exploring other tenancy options, it puts the pressure on the landlord to match any offers that you find. Once your landlord knows that you are not guaranteed to renew, the landlord must do everything possible to keep your business.

If you are offered a lower price by a different landlord, you can return to your current landlord with these numbers to see if you are offered a better deal providing you with more leverage, since you will save money either way. Whether you have to move to another building to save this money or can do so in your current situation, you are in control of how much you pay in corporate real estate costs. 

By creating this competition, you also give yourself a chance of finding a better situation. Your current landlord might be unable to meet your needs, but you might find another landlord in a better location and at a lower price point. If your current landlord lowers the price substantially, you can return to the second landlord with these numbers to see if you can find an even better deal. 

Start this process at least a year before your current corporate real estate deal expires, as this gives you time to leverage these negotiations properly. 

For more great ideas to keep your corporate real estate costs down, check out our new white paper:

10 Steps to Cutting Your CRE Expenses