Manhattan Commercial Realty Corp.     Phone: 212-624-9224     Fax: 646-213-4963

Careers | Manhattan Commercial Management | Blog | Contact

Landlord vs. Tenant: Don’t Become Prey in the Leasing Game

October 23rd, 2015 / Author: rbielsky

Keys to the New OfficeWhen you’re searching for the best location for your business, you might feel like a hunter … but if you aren’t careful with your lease negotiation, you could end up being the prey. Being informed and prepared is essential to avoid becoming the metaphorical wounded gazelle in the jungle that is the real estate marketplace.

The landlord and tenant go head to head during the negotiation process — each doing his or her best to profit from the exchange. Due to natural understanding of the market and the property’s place in it, the landlord can sometimes have an advantage over the tenant. If you don’t keep a wary eye out, a landlord could lead you into a tax trap.

Make sure to watch out for these mistakes if you want to come out on top:

Mistake 1: Not renegotiating at the end of the original lease

When you renew a lease, no matter what, you’re never in exactly the same position that you were in when you originally negotiated the lease. You now have information about the space, the market, the area, and the landlord — and this information can be used to negotiate a lease that is better suited to you than your previous one, when you were still learning about the property.

Mistake 2: Moving spaces instead of renegotiating

If there are issues with your space, don’t skip out immediately — allow that to factor into your renegotiation. Moving will be expensive and time-consuming, not to mention that you might run into other problems in a new space that your current space doesn’t have. If your current space can still house your business and meet your basic needs, always renegotiate to get the best deal. You may be able to find ways to compensate for the issues you’ve come across so far.

Mistake 3: Going it alone

If you truly want to negotiate a better lease, your best bet is to hire representation. A tenant broker is on your side and has the expertise and education to identify risks and avoid pitfalls that you might not even know to look for. In addition, the presence of a broker will force your landlord to recognize the possibility of losing you as a tenant and will make them more disposed to offer the changes and amenities you want.

In the commercial real estate game, you want to be the hunter — so make sure you hunt with a pack! A broker can keep you from being the victim of a bad commercial lease, and make sure you come out on top.

Contact Manhattan Commercial Realty by phone at 212-624-9224, by email or online.

Tagged under: , , , , , , , ,

Post a Comment

Click on the listing for more details.