With the rise of shared and co-working spaces, today’s traditional commercial landlords and owners are feeling pressure to come up with incentives in retaining their existing tenants within their real estate portfolio. Relocating to a new office space comes with significant budgetary restraints and renewing a traditional lease can give landlords a captive tenant in their building if not leveraged correctly, allowing landlords to have the upper-hand in lease renewal negotiations. Shared and Co-working spaces are a great option to the real estate market but what if you are past the new cutting-edge startup stage or you are a company who values your own identity and space for your employees and company culture? Shared and co-working spaces may not be the best option. That is why our firm believes that the lease renewal is the optimal solution. The following is the high-altitude view of how we work this process.
How can you take advantage of your upcoming lease renewal?
Our firm’s strategy:
1. Approaching your landlord about a lease renewal depends on the size and complexity of your tenancy. Most tenants should initiate discussions with their landlord 12 months before their lease expiration.
2. We engage our team from the beginning. Our architect, designers, space planners, and IT consultants are available to sit with you to review your needs and draw up a preliminary plan.
3. Once this plan is prepared we work on the financial aspects of the deal. Concessions, Tenant Improvement Allowance and Base Rental are calculated not only based on current macro-market conditions but what are the weaknesses we can find within your current landlord’s real estate holdings.
4. Landlords are more than willing today to upgrade existing tenant spaces or relocate an existing tenant within their portfolio because it saves them significant upfront costs and time on the market.
5. The key to any fruitful negotiation is to translate all these data points and leverage the importance of your tenancy to your current landlord(s).
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You can also contact me at abose@keystone-commercial.com
