Most Americans agree that rent is too high. It's pushing up costs for businesses like yours, adding to the tide of U.S. inflation.
Lease negotiations are your tool for steadying these costs. They can help you secure lower rents and minimize future increases.
By improving your lease terms, you're setting your business up for a stronger financial position. Read on for essential tactics to help you navigate lease negotiations to your business's advantage.
Know What Your Business Needs
Before setting foot in negotiations, figure out what your business needs. Make a list of what you need now and what you'll need in the future for your commercial property.
Figure out your budget and where you want your business to be. This will help with negotiations and ensure you get a spot with better foot traffic or more parking spaces.
Get a Lawyer
Commercial leases in Rockville, MD, can be complex and very different from residential leases. Hiring a commercial lawyer helps you avoid mistakes during negotiations. They can look over the lease to save you from nasty surprises in the future, including hidden costs.
Calculate Your Expenses
If you're a commercial tenant, pay attention to all the extra costs that may come your way. Add them to your base rent and make sure they fit within your budget. This might include things like utilities, property taxes, insurance, and upkeep.
Make sure the landlord is clear about all future rent hikes and extra costs. This way, there are no unexpected expenses later on. It's wise to ask for your expenses to be visible in your tenant portal.
Check Your Lease Options
Commercial leases come in all shapes and sizes. From a gross rent lease to a modified gross lease to various types of net leases, there are many to choose from. Make sure you understand what each one costs.
For example, with a net lease, you might end up paying property taxes or utilities on top of your base rent. A triple-net lease might make you pay for operating costs and maintenance as well. Understand the differences before signing anything.
Know Your Market Rates
Talking with a Rockville realtor can provide you with up-to-date information. If the landlord's demanded rent is too high, you'll have the knowledge to negotiate a better price.
Request Tenant Incentives
Don't be shy about tenant incentives, especially if the property has been vacant for some time. Landlords may be willing to offer discounts on rent or contribute towards renovations.
Understanding Termination Rules
Always look at how you or the landlord can break the lease agreement. A clear understanding of these rules can protect you from severe penalties in cases of declining sales or outgrowing the space. In some cases, you can negotiate to sublease part or all of your commercial space as an exit strategy.
Master Lease Negotiations
Securing favorable terms in lease negotiations lays a sturdy foundation for your business's financial health. Be clear about your business needs and employ a commercial lawyer.
Use these insights to ask for tenant incentives and ensure competitor protection. Should you feel unclear, PMI Maryland Solutions is here to help. We have over 20 years of industry experience.
For expert guidance on leasing and all things property in Rockville, MD, contact us.
