Negotiating Commercial Leases Midterm

Commercial leases often have a long life- several years or more. As such, negotiating commercial leases midterm can be difficult- why would the landlord want to change the lease, especially if it is a rent reduction or other change less advantageous for him? Commercial lease is an important financial commitment, and paying high rents during a recession or business slow down can devastate a business. Never hesitate to assert yourself in letting your landlord know what your needs are. A lease agreement must work well for both yourself and your landlord, and there are several reasons why it might be best for you both if your landlord is willing to negotiate commercial leases midterm.

Tips for Negotiating Commercial Leases Midterm

• Manage your time well and start your negotiating early. The more time you allot for negotiation, the more opportunities you will have to arrive at a more suitable agreement.
  
• Before formally meeting up with the landlord to discuss the terms, be sure you have clearly though out your goals and have all details written down. To accompany your requests, have some researched facts to back them up. You want to make sure your landlord knows that the rent reduction or other lease modification is fair- so point out the benefits to him. For example, if other businesses are closing or he is losing a lot of tenants, he might be willing to accept a commercial lease negotiation to keep your business. Get the data on the vacancies he has, and the number of businesses shutting their doors in your area and present this info to your landlord as the reason to lower the rent.
   
• Landlords tend to be more flexible when it comes to long-term leases, so consider agreeing to extend your lease term if he will let you make a change mid term. Of course, for any business, you will need some flexibility too, so consider carefully whether you are in a position to agree to such a stipulation. If you are, it can be a good bargaining chip for a midterm reduction, especially if your landlord is concerned that he will have future difficulty filling the space because of the poor economy.
  

Getting Legal Help

Hiring a commercial real estate attorney is important when negotiating commercial leases midterm. Your lawyer can help to convince your landlord that negotiation is in both of your best interests.