CHAPTER 19 Tips for Negotiating Your Lease our Lease This is a stage of the process that will make or break your lease. The lease is prepared to favor the landlord and maximize the return on their investment. You (and your broker, if you have one) need to understand each part and clause and try to make any modifications that will favor your business. The best negotiations will target all areas, much more than just the monthly rent rate. You can’t successfully negotiate from a bad place. If you are running out of time before you need a space, don’t have other options, or don’t know your market value, you have no place to come from in these talks. A commercial agent will show their chops here when it comes to arriving at terms on buildouts, and making good provisions and personal guarantees. When the landlord or their agent tells you the terms, make sure you get them in writing before submitting the first counteroffer. Usually, they will already have emailed it to you. You need to have the initial terms in writing in case the landlord’s agent gets misunderstood or alters a landlord’s instructions. You can then easily prove that your first offer was made in good faith off what you were told. It’s also much easier to misunderstand any lease terms if they are just relayed verbally. That could lead to the wrong response. Plus, having it in writing will let you research parts of it or compare it with other leases. You can also run it past a real estate attorney. Once you get the initial lease terms, work with your team to 117
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