Self-Knowledge Provides Leverage

Does your landlord view you as a gnat or 800-pound gorilla? Knowing the answer to that question can greatly affect your ability to negotiate terms in your new or renewed commercial lease. Of course, a gnat to one landlord may be a gorilla to another!

The age and stability of your company, your credit-worthiness and the nature of your industry all affect your image in the landlord’s eyes. Real estate-specific factors include your lease expiration date, the buildout of your space, the size of your office and the length of a new lease you would be willing to sign.

Choyce Peterson also goes beyond these fundamental considerations in its real estate searches. We will research a building by talking to other tenants, discussing their experience and analyzing their arrangements.

Sometimes, existing tenants also offer unsolicited advice about building upkeep, amenities and tenant interactions. By pooling information garnered from a thorough investigation, Choyce Peterson gains a critical perspective to provide even more leverage in negotiations. For example:

–– If large amounts of space will be vacated, the landlord may be willing to cut a special deal.

– Tenants with only a few months left on their lease have greatly reduced leverage.

– Popular tenants with name recognition can attract new occupants to the building

Basically, you need to explore new office space with your eyes wide open, to your own inherent strengths and weaknesses, those of other tenants, and the overall status of a building or complex. Only by doing so can you gain the most cost-effective terms and ensure the best productive atmosphere for your business and employees.