A commercial lease agreement is a critically important legal document to protect your rights. A poorly written lease agreement can put you at a serious disadvantage if a difference or dispute arises at some point in the future. Commercial leases are often extensively lengthy and complicated, which is why it is prudent to have a knowledgeable commercial lease attorney by your side in order to draft and review the agreement thoroughly before signing.
This is particularly important if you are going to be responsible for the maintenance and repairs of a rented property. You should remember that you want the best possible deal while the landlord wants a tenant while negotiating a commercial lease. You should ask your commercial real estate attorney for advice if you don’t understand anything in the agreement. An experienced business lawyer will help ensure that you get a fair deal.
Here are a few things you should keep in mind while negotiating a commercial lease:
Understand All the Legal Terms
You should have a fair understanding of all terms listed in the commercial lease even before you attempt negotiations. This involves understanding every line after reading it painstakingly. You should also read the small print. Don’t hesitate in clarifying doubts with a commercial real estate attorney if something is not apparently clear.
Know Your Needs
It’s crucial that you head into negotiations after having a clear idea about your needs and priorities. You should also list factors and things that are non-negotiable. You will be better equipped for handling negotiations when you have a clear idea about what you want.
Come to the Negotiations Prepared
You should come to the negotiations prepared to get what you want. This means having a clear understanding of leases and putting a strategy in place. You should be prepared to back up any request you make with examples from other similar commercial leases in your area.
Start Negotiations with a Strong Position
Good negotiations take place when you have a strong position. You should start negotiations by taking up points that you believe the landlord will be less likely to compromise on or give up. Once you have successfully navigated these issues, you will find it easier to move on to less important concerns.
Don’t Become Too Rigid
It is vital that you are flexible in your negotiations. You should be prepared to stand up for your priorities, but you should also have a clear idea about how flexible you can be. It may be worth compromising on certain issues just to get the deal done.
Commercial landlords are less likely to budge on properties that are in strong commercial areas. However, commercial markets are open to change. And, if things change, you can always ask for renegotiations. While there are no strict rules, most commercial landlords are open to renegotiations when commercial rents go down in a particular area.
Be Reasonable and Realistic
Nobody appreciates a pushover. Commercial landlords don’t tend to appreciate possible tenants that come to negotiations with unrealistic expectations. It doesn’t matter how good you are at sugarcoating your expectations – they need to be realistic.
It’s crucial for you to know the commercial real estate market and commercial real estate business inside out. However, you also need to be realistic about the things you can expect to achieve during negotiations.
Consider Multiple Offers
Don’t be in a rush to sign a commercial lease agreement without taking time off to consider it completely. This is even when the landlord makes a tempting offer. You may end up making a poor business decision if you rush into things. Hence, you should take time to digest the little things on offer and discuss it with your employees, colleagues, and family. You should never take a commercial real estate decision lightly.
Remain Positive during Discussions
The best negotiations are those that have a positive tone throughout. You are trying to get a deal done and not pick a fight. You may not find it helpful to be aggressive or hostile. It is important that you remain constructive and positive.
Look Ahead in Future
Don’t just look at the immediate benefits but focus on the long-term as well. Commercial rent negotiations usually have long-term implications. You need to ensure that you would be happy with the terms 5 – 10 years down the line as well.
Have a Trusted Lawyer on Your Side
Commercial rent leases are often full of small print. However, don’t let this scare you away from negotiating for a useful deal. Always remember that even though the commercial landlord may know the fine print inside out, you have the law on your side. Having a good commercial real estate lawyer make the negotiations can prove to be invaluable to your interests. They can help you navigate tricky clauses for ensuring that the agreement is fair.
Contact a Competent Commercial Estate Attorney Today
Commercial leases can be difficult to negotiate because they are so complex. With a knowledgeable commercial estate lawyer on your side, you can fully protect your interests. The attorneys at the Birmingham Law Group are thoroughly experienced in handling different types of commercial lease negotiations. You can schedule a free consultation with one of our capable attorneys by calling (205) 994-0902 or completing our online form.