When you have a commercial lease in New York or New Jersey and start nearing the end of its lease term, you have to consider whether it makes more sense for your business to renew the lease or search for a different commercial space elsewhere. You may also decide to use this time to ask your landlord to make certain accommodations for you so that your existing space meets your needs better.
Commercial leases often have lengthier terms than standard residential leases. Jones Lang LaSalle recommends taking the following steps when trying to negotiate your commercial lease renewal to give yourself your strongest shot at making your existing space work for you.
1. Research alternatives
The more you know about your options, the better you might be able to argue for what you want. Researching alternative rentals that exist in the market helps ensure you do not wind up stuck if you and your current landlord are unable to come to terms with renewing your lease.
2. Start early
It is also important that you give yourself enough time to work through lease renewal negotiations. Consider starting them several months before your lease term ends.
3. Know your market
Showing your landlord that you have knowledge of the market and your options may help prevent him or her from trying to pull the wool over your eyes. It may also give you bargaining power, because you may argue that other rentals are offering more amenities for the same or a similar price.
If there are things about your existing commercial space that do not meet your business’s needs, vocalize your concerns before renewing your lease. Once you do so, you have limited options.
