What are the best leasing strategies for businesses in a competitive market?

3 Understand the market conditions

The commercial leasing market is constantly changing, and you need to be aware of the current trends, supply, and demand in your area. This will help you determine the appropriate rental rate, incentives, and concessions for your desired space. You can use online tools, such as CoStar or LoopNet, to research comparable properties and see what other tenants are paying. You can also consult your tenant representative, who can provide you with more detailed and accurate data and analysis. By understanding the market conditions, you can avoid overpaying or missing out on opportunities.

4 Negotiate smartly

Once you have found a suitable property, you need to negotiate the lease terms with the landlord. This is where you can use your market knowledge, tenant representation, and bargaining skills to get the best deal possible. You should not accept the first offer or settle for the standard lease agreement. Instead, you should try to negotiate on various aspects, such as rent, lease term, rent escalation, security deposit, tenant improvement allowance, maintenance responsibilities, subleasing rights, and renewal options. You should also ask for incentives and concessions, such as free rent, reduced rent, or moving expenses. Remember, everything is negotiable in commercial leasing, and you should aim for a win-win situation.

5 Review the lease carefully

Before you sign the lease, you should review it carefully and make sure that you understand all the terms and conditions. You should also have your tenant representative and a lawyer review it and advise you on any potential issues or risks. You should pay attention to the clauses that affect your rights and obligations as a tenant, such as default, termination, assignment, indemnification, and arbitration. You should also check for any hidden fees, charges, or clauses that may increase your costs or limit your flexibility. If you have any questions or concerns, you should clarify them with the landlord or request changes.

6 Plan ahead

Finally, you should plan ahead and prepare for your move and occupancy. You should coordinate with the landlord, your tenant representative, and your contractors to ensure a smooth transition. You should also budget for any costs associated with moving, renovating, furnishing, or equipping your new space. You should also keep in touch with your landlord and maintain a good relationship throughout the lease term. This will help you avoid any disputes, resolve any issues, and negotiate any changes or renewals in the future.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?