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How do you negotiate a favorable commercial lease renewal?

On Behalf of | Jul 13, 2022 | Real Estate |

When your commercial lease term ends in Florida, it presents you with an opportunity to try to negotiate with your landlord if you wish to renew the lease and remain in your current location. Commercial leases typically have lengthier lease terms than residential leases, so failing to make any changes to your existing lease agreement might mean you are stuck with things as they are for several more years or even longer.

According to Jones Lang LaSalle, there are certain steps you might take during lease renewal negotiations that may give you a leg up on your landlord and help you get what you ask for while negotiating. During negotiations, it may benefit you to do the following.

Research the market and showcase your knowledge of it

It is wise to demonstrate to your commercial landlord that you understand the local market. For starters, this shows your landlord that you know you have other options if negotiations do not work out in your favor. It also helps prevent your landlord from trying to pull the wool over your eyes or making it seem like there are no other competitive options out there.

Assess your current space

Before renewing your commercial lease, you may also want to take some time to assess the condition of the space you currently occupy and determine if there are things your landlord might do to make it more accommodating or functional with regard to your business’s needs.

Even if you are, in general, pleased with your current commercial space, try to look at things from an economic standpoint. Once you renew the lease, it may be several years before you have the opportunity to renegotiate.

Founding Partners Damaso W. Saavedra and Allyson D. Goodwin