Given the total business cost combined with the complexity of commercial leases (many can exceed 40 pages), leasing commercial space can seem like a very daunting task.
In this 5 part series, I will discuss fundamental negotiating basics every tenant should know to help mitigate risks and reduce costs when negotiating their commercial lease.
PART 4: Need to Have vs. Nice to Have
When negotiating a new lease, tenants typically begin by sending an offer containing their “wish list”. After the landlord reviews the offer and returns it, tenants are usually disappointed by how little landlords are willing to concede.
Your strategy should not be to try and get everything on your “wish list”. Instead, identify the items that are absolutely necessary (need to have) and those that can be negotiated (nice to have). Negotiate hard for your need to haves and make concessions regarding your nice to haves to help move the lease negotiations along smoothly.
PART 2: Consider Your Negotiating Power