Office Lease Negotiations - Dos & Don'ts
Find out the basic principles and the art of negotiating an Office Lease.
Being able to close a good office lease deal is crucial to the ongoing success of your business in the newly found office space. And although your Commercial Property Agent will negotiate hard on your behalf to secure the best deal, it's important to be aware of how effective negotiating can help you achieve winning results.
These Dos and Don'ts of Office Lease Negotiations will make you aware of what being a good negotiator is all about, and will help you to give a clear brief to your Property Agent:
DO - Be Clear about your Wish List
Before your Property Agent even starts negotiating you need to have a clear idea about what you want. Important areas to consider are length of office lease you are prepared to agree, break clause and subletting inclusions and how the rent is to be reviewed etc.
DO - Ask for it
Don't feel embarrassed or scared to ask for concessions. There's no harm in asking, and if the answer is no, use it as a starting point for your negotiations. Remember, the saying "if you don't ask - you won't get!"
DO - Your Research
Make sure you are fully prepared and armed with the right market knowledge when negotiating an office lease. Ask your Property Agent to give you a brief summary of what market rents are being achieved in your area, as well as details of the lease deals that have recently been agreed so you have a clear idea about what's realistic.
DON'T - Negotiate Yourself
No matter how good a negotiator you consider yourself to be, a good local Commercial Property Agent who also knows the market and negotiates office leases for a living is in a far stronger position to carry out office lease negotiations than you are!
DON'T - Appear Desperate
Any landlord can sense desperation a mile off, and this will only weaken your negotiating position. Keep your cool and make sure your Property Agent negotiates several properties at the same time to see which comes out the best deal.
DON'T - Let your Heart Rule
Always follow your head as far as negotiating office leases are concerned. Have clear perimeters of what you are (and aren't!) prepared to agree. You need to be pragmatic about committing your business to an office lease agreement, so don't allow your heart to rule. And if things don't work out on the property you like best - be prepared to walk away - there will be others.
Find a good Commercial Property Agent in your area to negotiate a favourable office lease on your behalf.