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Negotiating a favorable commercial lease renewal

On Behalf of | May 10, 2021 | Real Estate Law

Before the end of your Pennsylvania commercial lease term, you may want to examine the local market and take a good, hard look at your existing lease agreement. Commercial lease terms are often lengthy, so it is wise to review your lease to make sure it still suits your needs before making the decision to resign.

Per Jones Lang LaSalle, you may be able to negotiate a better commercial lease agreement by taking the following steps.

Understand the market

The more you are able to show your landlord that you are aware of the market and your options, the better the chances of him or her agreeing to lease terms that benefit you. Position yourself as a knowledgeable, well-informed tenant who recognizes that other commercial spaces exist and that some of those spaces may help you save money.

Understand what your landlord stands to lose

It may also give you more negotiating power if you show your landlord that you recognize what he or she stands to lose if you were to vacate your commercial rental. He or she may have to spend considerable time finding a new tenant. That tenant may not be as conscientious as you are when it comes to keeping the space neat or paying rent. During the search for a new tenant, the commercial space may stay empty, leading to financial losses for the property owner.

If you decide to stay in your existing rental, consider asking your landlord to make accommodations so that it better suits your business’s needs. The time to make such a request is before you officially renew the lease, rather than after.

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