A commercial lease will be one of the most important things you set up within your business. A poor lease agreement can drain you financially, even if your business is profitable. Negotiating your lease effectively can save you time and money.
Commercial lease terms tend to be longer than home rental terms, averaging at about 3 years. The structures of responsibility in commercial leases are also more flexible.
Depending on the type of lease you agree to, your rental situation could range from paying a smaller base rent but be responsible for costs like utilities, maintenance, and taxes to paying a premium to have the landlord take care of all financial responsibilities.
If you’re a brand-new retailer, paying that premium may actually be smarter as it allows you to budget efficiently.
It is important to note that you will likely have the most negotiating flexibility on the lease structure with an independent landlord, as opposed to a corporate one.
When it comes to a commercial lease, there are a lot of little things that can be negotiated and requested to make the lease work in your favour. In addition, some of the smaller details can either make up for a higher base rent than you wanted, or you can use them as tools to lower that base rent.
With over 40 years’ experience, our team at Preempt have the expertise in understanding and optimising the nuances that exist within lease agreements and supported by our sister team at Sonica, we can help you redesign your space and optimise its efficiency.
Whether entering a new lease, or negotiating an existing lease, CONTACT US today to see how our team can help you in your lease negotiation.