Negotiating or renewing a lease?
It's been said before but it can't be repeated too often, the only part of the agreement that matters is the part that's written down. Prospective tenants are sometimes too fixated on a specific opening date or location to really pound out the details and foolishly agree to 'work out the details later' - to much future regret.
Prospective tenants often overlook significant opportunities to improve their position, so here are a few reminders.
Forbearance: While the actual monthly rate is often difficult to move (often because the landlord's lender is seeking a specific revenue model), it is often possible to negotiate a gap between the first day of occupancy and the date the first rent payment is due.
Kick-out clause: a prospective tenant can negotiate the right to terminate if certain conditions occur. Uncertainty is a factor in any venture and a kick out provides the means to mitigate the risk of a long-term lease. Kick-out clauses are difficult to negotiate and landlords who agree require substantial advance notice of termination, along with a penalty. A reciprocal kick-out clause could be requested if the landlord is relying on the prospective tenant to drive traffic
Everyone loves a list, so please to be enjoying Top 10 Lease Negotiation & Site Selection Mistakes, which is © Copyright Michael Coretz 2012 all rights reserved.
Remember, while location is important (per the old joke about the three most important things...), no location is worth the cost of a bad lease. Commercial leases are non-negotiable once signed so resist the urge to tell yourself you'll "work things out later" - later is now! Consult attorneys and advisers before you sign - coming to us after the fact will serve no one, least of all, you! Call Kevin, your accessible business adviser at (360) 447-8788