How to Continue Getting a Good Deal on CRE Space
Even if your business is expanding and has done well in what has become a “tenant’s market,” you might still worry that, given the current political climate, the market may become unsteady again. If you’re looking at prospective retail spaces soon there are several ways you can still take advantage of this market when negotiating now.
Tip #1: Ask! The number-one rule in lease negotiations is that if you don’t ask, you don’t get. Why hold back? Also, your chances of getting concessions are much better if you ask for concessions before you sign the lease.
Tip #2: Control yourself. Even though you may be excited about finding an excellent deal, don’t let the owner know. If you show that you really want the space before the lease is signed, you are weakening your chances of getting what you want.
Tip #3: Avoid long-term leases. Instead of locking yourself into a long-term deal, go for a shorter term (such as two years), and ask for multiple options to renew. This arrangement provides you with an opportunity to leave the space if the need arises (failed business, better deal, etc.).
Tip #4: Get CAM charge estimate before signing lease. Take advantage of your negotiating position by demanding an estimate of the CAM costs that the owner expects you to pay. This estimate should help you set a budget for your business and highlight any unnecessary, improper, or inflated charges.
For six more tips on how you can get tenant-favorable terms for new space, see “Negotiating in an Uncertain Market,” available to subscribers here.