What are the top lease negotiation tips for Corporate Real Estate professionals?

1 Know your needs and goals

Before you enter any lease negotiation, you need to have a clear understanding of your current and future real estate needs and goals. This includes your space requirements, budget, location preferences, growth projections, and operational objectives. You also need to assess your market position, competitive advantages, and bargaining power. By knowing your needs and goals, you can prioritize your deal points, set realistic expectations, and communicate your value proposition to the landlord.

2 Do your research and analysis

Another key tip for lease negotiation is to do your research and analysis on the market conditions, the property, and the landlord. You need to gather and compare data on the availability, demand, and pricing of similar properties in the area, as well as the occupancy, vacancy, and tenant mix of the building you are interested in. You also need to evaluate the financial strength, reputation, and motivation of the landlord, as well as their leasing history, incentives, and concessions. By doing your research and analysis, you can identify opportunities, risks, and leverage points for your negotiation.

3 Build rapport and trust

Lease negotiation is not only about numbers and terms, but also about relationships and trust. You need to build rapport and trust with the landlord and their representatives, as well as with your own team and advisors. You can do this by being respectful, honest, transparent, and professional throughout the process. You also need to listen actively, ask open-ended questions, and show empathy and understanding of the other party's perspective. By building rapport and trust, you can create a positive atmosphere, reduce conflicts, and facilitate win-win outcomes.

4 Be flexible and creative

One of the most important tips for lease negotiation is to be flexible and creative in finding solutions that meet both your and the landlord's interests. You need to be willing to compromise, explore alternatives, and make trade-offs on some of the issues, while maintaining your core objectives. You also need to be creative in proposing and evaluating different options, such as rent abatement, tenant improvement allowance, subleasing rights, renewal options, and termination clauses. By being flexible and creative, you can overcome challenges, avoid impasses, and achieve mutual benefits.

5 Review and verify

Before you sign any lease agreement, you need to review and verify all the details and documents carefully. You need to make sure that the lease reflects all the terms and conditions that you have agreed upon, and that there are no hidden fees, clauses, or liabilities. You also need to verify that the property meets your specifications, standards, and expectations, and that there are no defects, damages, or violations. You may need to hire a lawyer, an accountant, or an inspector to help you with the review and verification process. By doing so, you can avoid disputes, errors, and surprises later on.

6 Follow up and maintain

After you sign the lease, you need to follow up and maintain your relationship with the landlord and their representatives. You need to keep track of your lease obligations, payments, and deadlines, and comply with them in a timely and consistent manner. You also need to communicate regularly, report any issues or concerns, and request any repairs or services that you need. You may also want to seek feedback, provide recognition, and express appreciation for the landlord's cooperation and support. By following up and maintaining your relationship, you can ensure a smooth and successful lease experience.