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 available credit 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, and the size of your office in relation to other tenants in the building.
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, often omitted by the landlord. By pooling information garnered from a thorough investigation, Choyce Peterson gains a critical perspective to provide even more leverage in negotiations. For example:
– If other tenants are large corporations, they may wish to expand into your space.
– 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
We strongly recommend you proceed with open eyes to your own inherent strengths and weaknesses, those of other tenants, and the overall building situation. Only by doing so can you gain the most cost-effective terms and ensure the most productive relationship and atmosphere for your business and employees.