REoptimizer^® Blog

Corporate tenants are now seeking opportunities to mitigate the effects of COVID-19 on their businesses. Some of the avenues being utilized include rent holidays, rent reductions, and monthly as opposed to quarterly rent payment schedules. In some cases, corporate tenants are trying to exit their commercial leases. Many commercial buildings are already empty due to Coronavirus restrictions, especially in the hospitality, retail, and leisure sectors. These businesses are not alone. This article aims to explore the best possible ways for corporate tenants to negotiate a rent reduction for premises closed by COVID-19.

While lease negotiations may cover complicated legal documents that can carry millions of dollars in overall costs, turning the process around to your benefit doesn't have be hard to do. To make your negotiations successful, the key is to go in with a good strategy. Here are some tactics that you can use to help support your strategy in your next lease negotiation:

Managing the lease renewal process is more than a necessary evil. It's also an opportunity for you to better tailor your company's real estate portfolio to achieve your goals. Once you've decided to renew a space, the negotiations start. Here are four strategies that can help you come out on top of the negotiation.

While a rent abatement is one of the more valuable concessions that a corporate real estate tenant can receive, it's also one of the least expensive ones that an owner can give. With this in mind, some landlords will use rent abatements as a way to get a tenant to settle for a less valuable package of concessions than might otherwise be available. Furthermore, rent abatements can come with varying terms and may not save you as much as you think.

Lease negotiations are serious business. Even relatively small leases can run into the millions of dollars when you include the cost of moving and tenant improvements. Most landlords come to the table with expert-level market knowledge, prepared with sharp attorneys and professional lease negotiators on their side. When you go toe-to-toe with them, even your sharpest corporate counsel may not be able to keep up. To succeed, you need an experienced lease negotiator with the skills and market knowledge to be able to meet the landlord on every point and help you prevail. Here's what to look for: