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Top 10 Office Lease Negotiation Tips for Tenants

Office Lease Negotiation Tips

If your company is thinking of renting office space then read on for some background tips on how you need to go about securing the best deal for your business.

1. Allow Enough Time
When it comes to negotiating a successful office lease, time can be one of your most valuable commodities. Many tenants frequently underestimate the time it takes to perform due diligence and negotiate the right lease terms for your business.

2. Get The Right team
Negotiating lease terms and reviewing the lease requires specialist skills and knowledge of a property agent and a solicitor. Tenants are strongly advised to have both these people on your side to level the playing and secure the best deal possible for your office space lease terms.

3. Be Clear About Your Requirements
Before embarking on a search for the right office, tenants must have a clear idea of their requirements. You need to have a clear idea of issues such as lease length, break clauses, and whether you wish to have any inclusions such as rent free periods, permission to sublease and whether you require any help from the landlord with regard to office fit-out.

4. Consider Total Costs
A tenant’s occupancy costs go far beyond the base rent. They should also incorporate service charges, taxes, business rates and any maintenance charges you might be expected to pay. Get a full breakdown of all office costs during lease negotiations before committing to a new lease.

5. Ask For Incentives
Don’t be afraid to ask for tenant incentives such as help with fit-out costs, or a rent free period that make the overall lease package more attractive. The landlord is unlikely to automatically offer any incentives so if you don't ask - you don't get!

6. Negotiate On Several Properties
Negotiate several properties at the same time to give you the necessary leverage and competition you need during negotiations. It is only through this that you will obtain the most favourable lease terms. Remember that your aim is to find a property that suits you with the lease terms that are right for your business too.

7. Look For Flexibility
In today’s rapidly changing business environment, tenants need flexibility to align their office space to their changing business needs. Make sure that during negotiations, the landlord shows a degree of flexibility with the rights to contract, expand, terminate or sublease space as required. If they are not flexible during negotiations then they are unlikely to flexible throughout your tenancy either.

8. Due Diligence
Make sure you do all the necessary due diligence on the building in question and on the landlord to avoid any nasty surprises such as building infrastructure issues or the landlord’s financial stability during your tenancy.

9. Understand All The Terms
Make sure you are absolutely clear of all your responsibilities as a tenant when committing to a contractual arrangement such as an office lease. Your property solicitor should clarify any terms you don’t fully understand and help you interpret the legal jargon into something you can relate better too.

10. Be Prepared To Walk Away
If a landlord is not prepared to budge on a particular issue that is important to your business and/or tenancy – then be prepared to walk away. There are plenty of other properties out there that are sure to meet your requirements. For more information on finding the right office and negotiating lease terms, check out the free Office Space Checklist.


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