When entering lease negotiations for a commercial property, maintaining a strategic approach is crucial. Here are some key tactics to consider:
1. Control Your Emotions
It's important not to show too much enthusiasm when inspecting a potential rental space. Displaying overt excitement can undermine your negotiating position. Instead, adopt a neutral or slightly negative demeanor to convey that you are not fully convinced by the property. This can prompt the landlord or agent to offer more favorable terms to win you over.
2. Strategic Comments
During the viewing, make strategic comments that express concerns about the space, such as the amount of work it might need. This can lead the landlord or leasing agent to initiate negotiations with offers to accommodate your needs, potentially leading to better terms.
3. Play-Acting
A bit of negative play-acting, known as the "extended flinch," can be effective. By showing reluctance and highlighting the drawbacks of the space, you communicate that significant concessions would be necessary for you to consider signing the lease.
4. Understand Lease Complexity
Recognize that a lease agreement can be complex and that many terms are negotiable. From the rent amount to the length of the lease and conditions of use, almost every aspect can potentially be adjusted. Approach the lease as a negotiable document where you can advocate for terms that better suit your needs.
5. Negotiation Is Key
Engage actively in the negotiation process. Many tenants secure surprising concessions simply because they choose to negotiate terms rather than accepting the initial offer. Without asking for adjustments or better conditions, you may miss out on opportunities to improve your lease terms.
6. Prepare for Partnership
View signing a lease as entering into a partnership with the landlord. Your goal should be to foster a relationship where both parties benefit. Understanding your landlord’s position and concerns can help you negotiate terms that make the lease a supportive element of your business rather than a burden.
By following these strategies, you can approach commercial lease negotiations more effectively, potentially saving your business significant amounts of money and avoiding the pitfalls that have led to difficulties for others in your industry. Always consider consulting with a commercial real estate expert or attorney who can provide tailored advice and representation in these negotiations.
