Are you thinking of renewing your old lease without tenant representation? Here are reasons to reconsider.
Many business owners and executives find negotiating lease renewals as an undesirable task that must be performed. Generally, they perform many tasks, and lease renewal/renegotiation can be viewed as the least pressing task. They often see commercial real estate as an expense to be minimized instead of a strategic business advantage that will improve business finances and growth strategy. For this reason, they wait to engage with the landlord, and often, after the timeframe allowed in the current lease agreement to renegotiate lease terms, square footage, or maintenance allowances. All of which can save money and impact your bottom line.
Here are three reasons to consider engaging a tenant advisory broker.
Market knowledge – Current market conditions can greatly affect your lease rates and terms. Assuming your landlord will renew your lease on reasonable terms leaves you vulnerable. Knowledgeable tenant advisors understand the market value of your lease and can help you can make an informed decision about whether or not the lease renegotiation makes sense for your short- and long-term business goals.
Negotiating advisor on your side – Your tenant advisor is there to represent you, and you only. Plus, they have a lot of experience representing both tenants and landlords so they will understand what motivates each side in a lease negotiation.
Financial impact – The risk of not getting as much value as you could out of your lease renewal may impact your bottom line. Your tenant advisor will evaluate your business goals, finances, and growth strategies to determine if your current leased space is still right for you.
Don’t forget to start the process early before time expires under your current lease to engage your tenant advisor. Depending on the lease structure, many tenants miss this window of opportunity. Starting early will put you in the best situation for renegotiation and give you the best leverage. However, even if you are behind in your lease renegotiation process, still contact your tenant advisor. There are many areas your advisor can still help you.
Learn how Verity Commercial tenant advisory services can help you with dependable decision matrices so that real estate decisions can be made with confidence. At Verity, we negotiate responsively and tirelessly on your behalf to bring you the best deal possible.