For potential tenants, obtaining Massachusetts space for lease can be tricky. However, leasing space in Massachusetts is sometimes more complicated than buying a commercial property. Negotiating the lease is one aspect that could have the biggest effect on the property owner. Let’s look at how you can negotiate your commercial lease successfully.
Here are some tips to negotiating your commercial lease:
1. Lease comparisons: Most potential tenants are not willing to provide their max budget information. However, you can slowly deduce how much money that they are willing to spend on the monthly payment by checking comparable leases in the area. To improve your chance, try to negotiate terms that will work in their favor.
2. Extend the length of lease: Most of the time, it will be troublesome and unprofitable to lease commercial properties for a short period of time. For small businesses, a term of two years should be quite acceptable. Be sure the option to extend the lease is favorable for both you and the potential tenant.
3. Focus on the location: If the potential tenant knows that the location is favorable, then it is more likely for them to agree to a higher rent payment. This is especially true for location-dependent businesses, such as a restaurant.
4. Compare your property with other commercial properties: It is a good idea to compare with other commercial rental properties in the area. If your commercial property has multiple strengths compared to the competition, you can easily emphasize this fact during negotiations.
5. Reveal and eliminate any hidden costs: Some property owners purposely hide additional costs during the negotiation process. It is a lot better if you can reveal common hidden costs that are associated with other commercial lease properties and show that you can eliminate these hidden costs with yours.
6. Discuss the termination clause: Even if the tenant hasn’t signed the contract yet, it is a good idea to start talking about the termination clause. It is important to closely read all the terms associated with the termination and default of the lease. Show the potential client clauses that can result in eviction, if violated. If potential tenants are agree about what not to do, it is more likely to establish a long-term relationship.
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