We love our tenants, but we see them make a great deal of unavoidable mistakes.
1. Starting too late.
The number one mistake we see tenants make….they do not start the negotiations until it is too late. If you have been following my earlier posts you know this is something we have run into many times over the past few years.
2. Everything IS Negotiable
We often find that tenants are not even aware that negotiation is a possibility! While rent is an important component of a lease, there are many other important business issues you can negotiate. For example, if you know your business is growing, you will want to make sure you have a clause in your lease that dictates first refusal on adjacent space – which means that if space next to you becomes available and your company has grown enough to need the space, you will be the first one it is offered to.
3.Think About Seasonal Needs
Another issue we see is failure to think about your business cycle or seasonal needs. An example is the need for special storage – perhaps a few months a year you will need specific storage that your landlord could easily provide. When it comes to your lease, make sure you examine all angles and work with your tenant representative broker to get the best deal.
4. Trusting the Landlord
We also find that our clients are overly trusting of their landlords. Many tenants assume that their landlords have their best interests at heart, and sadly, this simply is not the case. Do not be fooled….landlords are looking out for themselves. They are in this business to make money. You need to look out for yourself and protect your company. A landlord’s building is worth more if he has a bevy of long-term leases, so it is likely that you will be asked to sign a long-term lease. Do not give in if this is not what is right for your company. If a long-term lease is not in your firm’s best interest, do not give in to the pressure. We advise our tenants to never sign more than a 5-year lease unless you have an early out or the building is an established company’s headquarters.
5. Not Using a Tenant Rep Broker
How to avoid making these mistakes yourself? Use a tenant representative. A trained representative will have your best interests at heart, not the landlord’s – and they will be able to protect your rights making your life easier in the long run.
Photo credit: “Right Or Wrong Directions” by Stuart Miles FreeDigitalPhotos.net
Source: Compass Commercial Blog