Negotiating a favorable commercial lease renewal

On Behalf of | May 26, 2021 | real estate | 0 comments

Before your South Carolina commercial lease ends, you may want to assess your current situation and make sure it still fits and serves your business’s needs. Commercial lease terms are often much lengthier than residential lease terms. So, the time to make adjustments or requests is before your lease comes up for renewal.

Per Jones Lang LaSalle, it often pays to start lease renewal negotiations far in advance. Doing so helps ensure you have enough time to figure out whether to ask for any upgrades or accommodations. It also gives you time to find an alternative commercial rental if you are unable to agree on lease renewal terms. You may be able to negotiate an especially favorable lease renewal by taking the following steps.

Recognize what your landlord stands to gain or lose

If you are a responsible tenant who pays rent on time, your landlord may want to keep you there. Good tenants are often hard to find. Also, having the space sit vacant for any length of time may lead to financial losses for the landlord, so it may be in his or her interests to agree to some or most of your proposed terms.

Understand the market

Showing your landlord that you know and understand the market and your options may also help you negotiate a favorable commercial lease renewal. Monitor the market to see if opportunities for savings arise. You may also want to let your landlord know that you are exploring other options, as this may make him or her more likely to incentivize you to stay.

Even if you feel your current commercial rental meets your business needs, you would be wise to examine your situation from all angles and make sure it continues to make financial sense, too.