Know Your Leverage Points
Whether renewing your lease, renegotiating it or relocating, always understand your value proposition. Understanding the true dollar value of what your tenancy is worth to a landlord is important in all lease negotiations. Having a firm understanding of your leverage points is the best way for Tenants to secure the valuable inducements available to them.
When Tenants know the range of costs a landlord would typically incur to replace them, they’re on their way to understanding the first key leverage point. Vacancy costs, carry costs, market inducements, brokerage fees, etc. are all expensive propositions for landlords.
Knowing what alternative offerings are available to tenants from competing buildings is your 2nd key leverage point.
Lastly, having lots of time before a renewal date is your 3rd most important leverage point.
“Modernizing your lease terms” can create additional leverage points for you in the future. Make sure you use your leverage points today to “modernize” your lease terms and you’ll benefit from those modern terms both today and tomorrow.
Having an experienced Commercial Realtor represent you during relocation, renewal or renegotiation is key to understanding and maximizing your leverage points and the outcome.