Five Things Every Business Owner Should Consider When Renewing Your Lease

Five Things I know about Commercial Lease Renewals

My Lease is coming up for renewal…Now what???

Sometimes it comes up annually and sometimes it comes up every three to five years…time to renew your lease. As a business owner, here are five things to consider when the time comes to start the lease renewal process.

 

1It’s not too early – You may think it’s too early to start evaluating your options, but it’s not. Give yourself a solid year to identify relocation options, review your current  renewal options, and make the right decision. Your landlord, and especially your landlord’s mortgage holder want committed tenants on long term leases. Commit to the renewal earlier than later and use that as a means to secure a lower lease rate or more favorable terms.

2A tenant rep WILL save you money – The agent hired by your Landlord to negotiate your renewal represents the Landlord… NOT YOU! His job is to get the Landlord the best deal possible. Hiring a Tenant Rep allows you to focus on running your business so you don’t have to handle the lease renewal process by yourself on top of everything else you’re doing on a daily basis. Your agent will do a thorough survey of the area to determine what other options are available and how lease rates at other properties compare to what you’re paying. You may not realize you’re comparing a triple net lease to a gross lease. Do you know the difference? I often compare a Tenant Rep to an attorney. You don’t go into court without your attorney so why go into a lease negotiation without your Real Estate Agent.

3 – Don’t forget those amortized fit up costs – If your rent included Fit-Up costs that were amortized over the term of the initial lease, it’s time for those expenses to drop off. Be sure your Landlord rolls your rate back and does not continue on the same schedule. Often times a Landlord will simply lump the improvements in with the base rent but you want to see those costs broken out so you aren’t continuing to pay for them well after they have been fully amortized.

4 – What about costs beyond the lease rate? – While considering all of your options, don’t forget to include costs beyond the Lease Rate you’re paying. If you’re considering relocating, you need to consider moving expenses including costs to relocate and set up I/T (phones, computers, etc…). If you’re looking at space in another city or town, utility expenses may be as much as 30% higher (or lower). You  may have an offer to lease similar space elsewhere at a much lower rate but after adding up all these additional expenses, your great lease rate may not look so great.

5 – Don’t assume anything is standard – Regardless of what  your landlord, the landlord’s agent, or anybody else says for that matter, you have the right to re-negotiate any and all terms of your lease when it comes time to renew. Reread your lease. Did you have a personal guarantee? Ask for it to be removed. Did your landlord include a provision giving him the right to relocate you? Ask for that to be taken out. Make sure the lease you sign is a document you are comfortable with and your attorney is comfortable with. A lease is a legally binding contract and should be scrutinized thoroughly.

What other things do you consider when renewing your lease? What would #6 on this list be? Please leave a comment below with your thoughts on other important considerations when renewing a lease.

Comments

comments

Powered by Facebook Comments

Comments

  1. Experts in the field of real estate believe that with the correct amount of logic and
    determination, one could become a millionaire using proper real estate investment techniques.
    Have a look at the apartment, condos, and also houses that are put up for sale.
    The thought is to build safeguards into structural systems in the
    event the expected load is larger than expected.
    Of course, the operator could refinance the property with cash out but that may not be the best option because:
    . This is the piece of legislation which deals with lease extensions.

    There are many advantages of real estate investment compared to other investments in Kenya.
    We are not realtors or associated with any real estate agency.
    The tenant pays for the construction costs and signs a long term lease
    for the lot. A lot of commercial properties are rented triple net(NNN), which means the tenant pays the property taxes, insurance, and maintenance costs.
    The site itself is best described as a micro-blogging site.

  2. In the last five years, the survey states, a face life, or rhytidectomy,
    is one of the most requested of all invasive procedures.
    And a proficient plastic surgeon with a lot of experience, can take that
    even further. Women are more likely to undergo plastic surgery but some males also
    undergo this medical procedure if they think they need
    to have some major changes in their body.

  3. The oil is used in a number of hair and skin care products.
    There is no guarantee that the best self tanner will
    suit your skin. Sometimes those from outside the system are the ones ideally suited to fixing the
    system.

  4. Fantastic blog! Do you have any recommendations for aspiring writers?
    I’m hoping to start my own blog soon but I’m a little lost on everything.
    Would you recommend starting with a free platform like WordPress or go for a paid option? There
    are so many choices out there that I’m totally overwhelmed
    .. Any suggestions? Thanks!

  5. What’s up, every time i used to check weblog posts here in the early hours in the daylight,
    as i like to find out more and more.

  6. Because of this, your body is actually operating on thousands of calories a day.
    As such, HCG incorporated foods form the best diets for quick
    weight loss. Here are a few tips, which will
    help give your metabolism an added boost while
    on the.

  7. Elyse says:

    You can definitely see your expertise in the article you write.
    The arena hopes for more passionate writers like you who are not afraid to mention how they believe.

    All the time go after your heart.

  8. Great beat ! I would like to apprentice while you amend
    your site, how can i subscribe for a blog web site? The account aided me a acceptable deal.
    I had been tiny bit acquainted of this your broadcast
    offered bright clear idea

  9. Uniion Public Service Commission conducts thhe interview for IAS selection procedure, with the
    aim of evauating personal eligibility of an aspiring candidate for the government service he has acdtually applied for.
    And no; it isn’t cheating if you write them out and refer
    to them when you ask the question. Many times it may happen that employer mayy ask you about the
    profile of the companby you are applying in to see whether you are really interested iin the job.

  10. Walker says:

    With havin so much written content do you ever run into any
    issues of plagorism or copyright violation? My blog
    has a lot of exclusive content I’ve either written myself or outsourced
    but it seems a lot of it is popping it up all over the internet without my
    permission. Do you know any solutions to help
    prevent content from being stolen? I’d certainly appreciate it.

  11. Joanna says:

    It is not my first time to visit this site, i am browsing this site dailly and obtain good data from here daily.

  12. Okay, so you have a decent starting portfolio of ‘glamour photography’ shots
    you’ve taken and assembled to show the possibilities of your range and depth of photographic artistry.
    This fabric is intended to be loose fitting, but wear it too loose and you’ll look fat.
    Make room for your trendy new wardrobe by going through your old clothes and getting rid of unwanted clothes.

  13. Without even considering the bulk of the project and the tasks and responsibilities, there’s
    a risk of double hiring. This method often gets publicized as an easy
    way to make money, because nobody has to buy a product for you to get
    paid. o A good CPA can assist you and your situation by offering more specialized advice
    and tax tips.

  14. They test rust download your abilities towards other well-known boxers which are now useless as your pricing guide.
    This prevents teens from buying games. It is a creation of
    the most powerful sort of online video gaming consoles.
    If you like to call the ‘GG’. Its not hard to ever get jaded on this idea might seem
    ridiculous, but there is another most appealing racing video games.
    Are you a time used to only find out why it is limited to between 1 and 2 or any author, have sold
    out before you buy from distributors.

  15. Janie says:

    Fantastic goods from you, man. I have understand your stuff previous to and you are
    just too magnificent. I really like what you’ve acquired here,
    certainly like what you are saying and the way in which you say it.

    You make it enjoyable and you still take care of to keep it smart.
    I can’t wait to read much more from you. This is really a wonderful website.

  16. Various types of clothes are being used by the men and women all over the world and that is
    why every man and woman must have a better idea about various types of clothes which they can make use of in their everyday life.

    Organic farmers must follow specific guidelines to become certified.
    The main cause for your urinary incontinence are the weak muscles
    that control your urethra.

  17. Hey I know this is off topic but I was wondering if you
    knew of any widgets I could add to my blog that automatically
    tweet my newest twitter updates. I’ve been looking for
    a plug-in like this for quite some time and was hoping maybe you would have
    some experience with something like this. Please let me know if you run into
    anything. I truly enjoy reading your blog and I look
    forward to your new updates.

  18. Good day! I know this is somewhat off topic but I
    was wondering which blog platform are you using for this site?
    I’m getting tired of WordPress because I’ve had issues with hackers and I’m looking
    at options for another platform. I would be great if you could point me in the direction of a
    good platform.

  19. This is my first time pay a visit at here and i am actually happy to read
    all at single place.

  20. What’s up to all, the contents present at this web site are really remarkable for people experience, well,
    keep up the good work fellows.

  21. Other famous residents of Battersea include chef Gordon Ramsay, comedian Harry Hill, singers Dannii Minogue and Mark Owen and fashion designer Vivienne Westwood who all live in Battersea.

    As what all of us know, Yoga is a sequence of workouts and disciplines to produce a wholesome, beautiful
    way of life that everyone is dreaming of. The company,
    with its collection of yoga music CDs and DVDs intends to help
    an individual attain a state of purity, peace and tranquility.

  22. This is the perfect blog for anyone who wishes to find out about this topic.
    You realize a whole lot its almost hard to argue with you (not that I
    actually would want to…HaHa). You certainly put a new spin on a topic that’s been discussed for ages.
    Wonderful stuff, just wonderful!

  23. If some one wants expert view concerning blogging after that i
    propose him/her to pay a visit this website, Keep up the pleasant job.

  24. How is this area too big then you have the ability to sit down, especially kids.
    The same goes for the eyes are constantly forming
    and testing boom beach hack new hypotheses. It could turn out to be able to currently
    see possible techniques. The only disadvantage to playing with food.

  25. Frequently, customers end up buying more as they peruse
    your website, because they want to take advantage
    of the discount while it is still valid. Google optimization conditional on the premise that the more often people that like aimed at
    your web, extra valuable it is required to be and the more
    significant ranking it deserves searching results.
    Using Facebook and Twitter to create a fun online community that your customers will want
    to visit will increase brand loyalty and drive traffic to your Website, allowing you the
    chance to make more online sales.

  26. Hair removal in some areas is essential to replace the areas where its growth has stopped.

    Redheads and folks with course hair will typically be higher shedders than blondes or those with fine hair.

    Oils that are perfect for sealing are Olive oil, jojoba oil, safflower oil
    or castor oil.

  27. tan says:

    Only use those that have a color guide, which will help you
    see where you applied the lotion. You can buy swimsuits in floral and island prints to add more fun to your look at the beach.
    First of all choose a suntan lotion that has a lot of moisturizer in it.

  28. Wow! In the end I got a web site from where I be able to genuinely obtain valuable data concerning my study
    and knowledge.

  29. Many anglers avoid the use of whole eggs altogether because they although they contain all kinds of essential nutritional components fish are obviously going to
    recognise them from previous egg-containing baits plus eggs affect digestion in various ways.
    Be sure to go with fresh bait, and stay away from the baits that are based on chicken or cat food.
    You can then take your armored vehicle and cash it in at a chop shop,
    creating a nice little criminal spree combo.

  30. They’re perfect for keeping personal matters at the same time, generating them the top accessory.
    As of today, cosmetics and makeup is used or not used by people who want to make a statement one
    way or the other. Another trick to ensure a longer lasting tan is to moisturize your
    skin with aloe vera or any natural moisturizer.

  31. You can keep your spray tan longer by using products that will not only preserve its color but also enhances it.
    You also have to be at ease in your dress, able to
    glide down the aisle in it & look comfortable all day long.
    They impart a brown color to the concoction, which immediately turns your skin brown.

  32. Hair is linked to our self-worth and our personality.

    They use a multi-therapeutic approach, trying to win the war on hair loss by using
    every possible angle. There are a number of lasers used to remove locks like
    Ruby aesthetic laser, Alexandrite laser, Pulsed diode array, Aragon aesthetic laser as well as Nd:YAG.

  33. Unquestionably believe that which you stated. Your favorite reason appeared to
    be on the net the simplest thing to be aware of.
    I say to you, I certainly get irked while people consider worries that they just do not know about.
    You managed to hit the nail upon the top and defined
    out the whole thing without having side effect , people could take a signal.
    Will likely be back to get more. Thanks

  34. I am regular visitor, how are you everybody?
    This article posted at this website is actually nice.

  35. ” He had been admitted to the ER due to a heart attack. Loss of muscle tone is often more significant in the lower extremities, leading to a decreased ability to walk and balance yourself, which then leads to a greater risk of falls and other injuries. If you go to the market for buying any weight loss product I am sure you will definitely get confused.

  36. A good place to start is by choosing the method of cabinet construction first:
    stock, semi-custom, or custom. The Masterbuilt designers
    added a drain clip to the fry basket which permits you to hang the basket
    on the side of the fryer as the turkey drains and cools.
    Start an inspiration file and share it with your designer during your initial meetings.

  37. What’s up everyone, it’s my first pay a visit at this web site, and paragraph is actually fruitful for
    me, keep up posting such content.

Trackbacks

  1. [...] If you’re current lease is coming up for renewal there are things you need to consider before deciding whether to renew at your current location or relocate to another property. Here is another post worth reading which highlights five things to consider when renewing your lease. [...]

Speak Your Mind

*