How do you negotiate a favorable commercial lease renewal?

On Behalf of | Jul 20, 2022 | Uncategorized |

When you lease commercial property for your business in Oregon, you may have to agree to a lengthier lease term than you would when renting a residential space. This is common, but it also means you may want to take a good, hard look at a proposed agreement to renew the lease before you agree to sign it. Otherwise, you may find yourself roped into the new agreement for several more years, which could prove troublesome if the space no longer suits your needs.

Per Jones Lang LaSalle, you may want to do the following during lease renewal negotiations to give yourself a leg up and boost the chances of you getting what you want.

Know what your landlord might lose

Unless you were late paying rent or otherwise a problematic tenant, your landlord probably hopes you are going to renew your commercial lease. That way, he or she does not have to waste money and time finding a new tenant or marketing the space to the public.

Ask what else your space might do for you

Now is also the time to ask your landlord to make any accommodations you need to make the rental space more suitable for your business and its needs. If you wish it had better technology, better lighting or what have you, ask long before your lease term ends.

Research other options

If you and your landlord are unable to agree to lease renewal terms, it helps to know you have other options. Research other rental properties in your market so you have somewhere to go if things do not work out in your favor.

No matter what you plan to ask for during commercial lease renewal negotiations, know that it pays to start the process early.