3 Tips for Negotiating a Commercial Lease
Negotiating Your Commercial Lease
As a potential renter of South Florida commercial real estate, negotiating most commercial real estate leases is usually a good idea rather than accepting the first terms offered. Given that the lease is one of the most important expenses for any company, any effort invested in negotiating more favorable terms or lower costs will pay off.
Here are some negotiating strategies for your next lease, which is typically simpler with the help of a commercial real estate lawyer in Florida:
Tip #1 – Look at comparable rents
It may appear to be self-evident, but it’s critical to look at comparable space rental prices in the city you’re thinking about moving to. This will assist you in obtaining the greatest bargain possible.
You’ll also want to consider any other expenses, such as your share of insurance and maintenance, as well as property taxes if applicable. If it’s a single, double, or triple net lease, you’ll need to think about your other expenditures as well: HOA fees and so on.
Your real estate attorney can assist you in determining exactly what costs you’ll be responsible for so that you know whether it’s a good deal or not.
Tip #2 – Consider the length of the lease
When it comes to their ideal lease term and the potential changes to their space that may occur in the next 1-3 years, each business will have unique goals. It’s critical to create a long-term strategy before entering negotiations so that you can choose the best terms and flexibility options.
Established firms may prefer a longer lease term, which can frequently result in lower negotiated expenses, whereas start-ups or high-growth companies may want more flexibility and thus shorter leases.
Tip #3 – Determine the ideal lease structure
Commercial real estate lease structures might vary significantly depending on the many different business situations that come up. Choosing among a single, double, triple, gross, or percentage lease may be difficult; each has several advantages and drawbacks.
Triple net leases pass maintenance, taxes, and insurance costs on to the tenant. Although this sort of contract is popular in certain sectors, tenant discussions are still suggested. Among other things, tenant negotiations can limit monthly expenses.
A double or single net lease may save money on some of these expenditures, but it will charge a higher monthly rent. A gross lease does not include any of these costs in the rental and is, therefore, more expensive.
Contact South Florida Commercial Real Estate Lawyer Leah Mayersohn
The wide range of scenarios that can be encountered during lease negotiations often necessitates a meeting with a Florida commercial real estate lawyer. If you are currently negotiating a lease, contact Mayersohn Law Group today.
