ANALYZE AND MAKE SURE YOU LIKE THE RENEWAL CONDITIONS
This will hold more importance the shorter your lease is. You want to have a renewal clause that matches or almost matches your entire business plan for the time period. If after the lease is up and you have a similar staff and situation, work for a release clause with terms you and the broker approve. This is where you can work with the landlord to really help accommodate any plan of growth you may have. Right of first refusal and those types of clauses can be pushed back for when leases expire or in a second lease. Even if you don’t care about that at this moment, your plans may change down the line.
ASK FOR FAVORABLE CLAUSES
Clauses like a right of first refusal or a favorable renewal are things you should at least attempt to get. If you may have extra space, ask for a sublease clause. If you are worried about competitors moving in around you, ask for a non-compete clause. There are many different clauses that can greatly benefit your business that you and your agent may want to look at. Your agent will know what is plausible and what isn’t after looking at the first lease proposal.
ANSWER WITH A COUNTEROFFER
Just like buying a house, you will usually answer the first lease offer with a counteroffer. There may be a few situations where leases are truly non-negotiable, but it’s usually a landlord offering terms and a price that will allow some room for negotiations.
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