When It’s Time to Renegotiate
When it’s time to renegotiate – or find new commercial space and start discussions with your landlord or a new landlord – it’s crucial that you have an experienced broker representing your interests to ensure that acquiring the space you need at a rate that is fair.
Our Tenant Representation Service aims to reduce rent and occupancy costs and, additionally, to stabilize future costs. The current commercial real estate market in Northern New Jersey is, without question, a tenant’s market. Vacancies are at an all-time high and rents are adjusting according to the new reality of the market.
Renegotiation is often the solution when moving expenses, timing and logistics involved in relocating employees and assets are considered.
A broker with experience in tenant representation, someone with knowledge of the market and the particular property in question can make all the difference in a successful outcome.
Possible terms to consider:
Do you need more space? Does the current space need repairs or improvements? Now is the time to negotiate those types of issues. Does the elevator constantly break down? Is there a problem with the HVAC system? Do the bathroom sinks leak? There’s no better time to get these issues addressed than during lease re-negotiations.
Of course, you can address problems regarding the property at any time during the life of the lease. However, you’ll have more leverage during negotiations.
Similarly, if you require additional space or flexibility for the future, re-negotiation is the perfect opportunity to discuss build-out, retrofitting or creating options for future expansion.
It is in the landlord’s best interest to negotiate the longest lease term possible to stabilize building income.
Discussing your options with your commercial real estate broker who knows the market and has analyzed your particular lease is crucial. An experienced broker will guide the tenant in the critical process of the lease transaction.
Even in the best market climate, when renegotiating a lease is warranted, there are times when remaining in an existing space isn’t beneficial for the tenant.
Newmark concludes: “An experienced commercial real estate broker will evaluate a tenant’s needs, know the regional market and diligently negotiate the very best lease terms that will allow you to efficiently conduct and grow your business.”
“Be forward-thinking,” advised Newmark. “It’s important, especially if you are negotiating a long-term lease, that you consider the long-term effects of your lease.”
For more information, contact Newmark Associates at (973) 884-4444.