Negotiating your new office lease terms is a part of the game!
When it comes to real estate, everyone tries his or her best to negotiate the best price. Of course the seller wants the highest price and the buyer wants the lowest price, but sometimes you have to meet in the middle.
In this type of world, people don’t always get what they want or deserve, but they usually get what they negotiate. Through out this article, you will learn a bit about negotiating and how we can make that process a little easier for you when looking at office space to rent. We're not going to get anywhere as in depth as with Roger Dawsons Secrets of Power Negotiation but it's on the recommended reading list!
We have gathered five good tips to making negotiating an easier process. Let’s take a look below.
1. Don’t contemplate rates, think terms
It’s natural to always be concerned about the costs involved with renting office space, but it’s also equally important about the terms in the lease. The terms will tell you if your business can continue making money for longer in that location. If the wrong terms are designated, the tenant will likely pay more in the long run for a place they are not happy with. Fortunately we offer a whole host of flexible terms with out AllOffice.Space listings
2. Don’t believe the word ‘Free’ when you hear it
Nothing is ever free in this world, other than love (and even then only some of the time). When someone is speaking about business and is saying the word free to get you excited, take that information with a grain of salt. People are in business to make money and 9 times out of 10 nothing is given for free. They might give you a free week of rent if you move in three quarters through the month or something, but other than that, it will be included in the lease some way or another.
It's always best to clarify all of the terms and conditions and make sure your understanding matches that of what your prospective landlord is presenting.
3. Coordinate for a solid legal analysis
Even though you have consolidated with your broker, at the end of the day- they are not lawyers. It is important to meet with a real estate lawyer to go over the terms and conditions of the lease. They know what to look for that you don’t. Also, whether you choose the place you are interested in, the lawyer will get paid regardless. Smaller leases are relatively straight forward but for custom build to suit endeavors or larger projects and terms it's best to have a proficient lawyer on your side such as the team at Grechi Carter Law.
4. Negotiate securities for a withdrawal
You might have found your dream location, but unfortunately with a traditional landlord and lease you have to be locked in for five years. Maybe your business will only need two to three years and you will need to withdrawal from your lease early. What are the cancellation clauses and is there a way to make it easier on you if that scenario happens. If you are now negotiating the lease and you know this place is the one, this is the time you should bring this topic up and see what the landlord says. It’s not a definite that this could happen, but in case it does you want to know that you can leave with minor penalties. Our terms at AllOffice.Space are very flexible from monthly terms up to multi year options, no surprises so if flexibility is a must than you had better contact our team first!
5. Find leverage
You want to create leverage when negotiating. Keep your serious opinions to yourself at this time in order for your agent to get the best price while negotiating. If the owner of the office space you are inquiring about sees that you are somewhat interested, they may be less likely to negotiate to your advantage.
At the end of the day, you can choose how you want to negotiate and what you think the place is worth. You will have an agent to help you with current market prices, so if you follow the key information provided in this article, you should be good to go! I get it if you don’t like negotiating all that much, but if it will save you money over the months and years; it’s well worth it.
Remember not to settle with the first place and the first price. There are many commercial properties in Toronto and all over the world that could benefit your business. Take your time and really analyze how each place you visit could benefit you. Make this process fun, and be excited. Or if you prefer, hand off your project to our team of Professional Leasing Agents and let us do all the work for you in finding an office space to lease. This is the next phase in finding office space for rent. Keep an eye out for out next article on ‘The paperwork.’ The article will explain to you how signing the papers work and what you need to know in order to do so.
Stay tuned for the final summary article in this 10 week series "Your Grand Opening"!