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How to get a Good Deal on your Office Lease

Negotiating a Good Office Lease

A commercial office lease is a long and complex document, and negotiating a good deal can be daunting, but as today's commercial property market continues to favour tenants, now is a good time to go-all-out with plenty of leverage and negotiate a good deal on your new office space.

A good Commercial Property Agent is essential at this stage, even if you are a good negotiator - don't try and do it yourself. Property Agent's negotiate office leases for a living and they know a good deal when they see one!

Once you have found a few suitable office properties, your Property Agent will begin negotiations. These usually start with basic issues such as rent and duration of the lease. For businesses wanting to sign longer leases, the concessions are usually more substantial. The landlord may choose to introduce tenant incentives to fill their office space by way of rent-free periods, contribution towards a new office fit-out or reduced rental.

Negotiating on a few properties will give your Agent plenty of leverage to negotiate one against the other, compare and then report back to you on the best deal. Your Property Agent should attempt to build in clauses that level the playing field and ensure a favourable outcome.

Pay attention to 2 important clauses: The notice period (how much notice you have to give) and the rent review clause (if you do decide to renew, will the rent be automatically upward only or can it be negotiated in line with market rents?). Being aware of these issues will not only ensure that you get a good deal, but that you protect your business for the duration of the commercial lease.

Finally, listen to the advice from your Property Solicitor, who will need to be involved when you receive the first draft of your office lease. There will be legal issues that need to be resolved and protected before anything is signed.

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