Important Office Space Lease Renewal Information!

Plano_Office_SpaceThe biggest expense for smaller and mid-sized businesses other than the employee payroll is usually the cost for leased commercial property. When a contract for a Plano office space is nearing its end, whether or not to renew it should be given a great deal of thought. Rather than just assuming the same terms as in the previous agreement, there may be some room to discuss better lease conditions.

If planned ahead of time, negotiating a lease renewal is always possible; however, a tenant should be knowledgeable about a number of things in order to support any change requests.

Negotiation Terms

  • Good Tenant – It should go without saying, but having been a good tenant should be a main ingredient when requesting a better agreement. Since a tenant usually does the asking, being on good terms with the owner will usually elicit the most positive results; a tenant who pays rent on time and creates few problems. Being an occupant that the landlord does not want to lose allows for a much better chance of renegotiation.
  • Rates – Check to see what other businesses in the same building are paying for that office space. Lease rates frequently change depending upon the economy, location and other amenities as well as a need to rent out the entire property in order to make money. Some tenants may have leased areas under some sort of special rate in help fill the space, which can be a negotiating point to bring up prior to a lease renewal. If a tenant is planning to request a lower rate, it is important to know what the current rates are for other in order to have a useable bargaining tool.
  • Other Considerations – Consider other ways that can make a lease better if a reduced rate does not seem likely. Improvements to the rental space, or even more office space, are ways for tenants to get more beneficial use of lease payments. Options such as a bigger sign for the tenant’s company could give better visibility and increase business which in turn could make the lease more affordable. More parking could be another alternative, especially if employees or customers are currently paying for parking. Tenants need to be creative in finding ways to save money if the lease amount is not changing.
  • Representative – Hiring a commercial tenant representative to help in the renewal process could be well worth the fee, especially if there is a need for successful negotiation of certain items. It is a representative’s business to know and understand the details involved in: finding commercial space; leasing such space; and renegotiating the renewal terms. It could make the entire renewal process much smoother and eliminate personal disagreements between a landlord and tenant that could affect a future business relationship.

The most important thing for a tenant to remember if that renegotiating lease terms should be done early, allowing sufficient time for negotiations and possible moving if the results are unsatisfactory. This allows for an owner to consider requests and weight them against the possibility of losing a good tenant. This also allows a tenant time to research other Plano office space for comparison and include that information in a decision as to how cost-effective such a move would be. Let the above important information be a useful tool in any lease renegotiation process!

Call LCRG When Looking for Plano Office Space!

Are you looking at renegotiating a lease for a great Plano Office Space location and help with the process? Call LCRG Realty Group at 214-526-2626 to help you with any renewal negotiations for Plano office space!