Stop Overpaying On Your Office Lease With These Expert Negotiation Tips

Leasing an office is one of the largest expenses a business will have, so you need to read the lease carefully and look at the finer details.

Length of Lease

Leases will be granted for a particular length of time at a monthly rent, and landlords will often push for a longer term. To allow you greater flexibility you can try and negotiate for a 1 or 2-year lease with a right to renew.

Whether a Landlord will accept this will depend on market conditions and how desperate he is for a tenant. If it’s a longer lease, you can also try and negotiate for a break clause. This means you can terminate the lease after a certain period, if need be. Having the right to sub-let all or part of the premises is also a useful tool, especially if you find you need less space or find it difficult to meet the monthly rent.

Deposits

Many Landlords will push for a security deposit at the beginning of the lease. Rather than having your money sitting idly, you could offer to pay three months rent up front instead of a security deposit. At least that way your money being put to good use and the Landlord has some security.

Maintenance, repairs and utilities

Commercial leases often have clauses requiring the tenant to repair and maintain the premises, and to pay a pro-rata share of the taxes, insurance and overall costs of running the building. You need to make sure that the costs proposed are industry standard. A broker and/or real estate lawyer can help you negotiate these and other terms.