These days, entrepreneurs can start their businesses in a variety of settings. Some may start strictly online and grow slowly until they are ready to move into a brick-and-mortar space. When that time comes, it can be exciting, but it is important to remember that commercial real estate leases are tricky.
Often, even if a Florida business owner believes that he or she has found the perfect space, it is unlikely that the lease terms will be perfect. Fortunately, a less-than-ideal initial lease does not have to be the end of the road. Instead, this is where lease term negotiations can come in.
An open-minded approach
While you may not necessarily feel confident in your abilities to negotiate a commercial lease, especially if you have never done so before, you may want to remember that it is not something that has to become overly complicated and is not something you have to do alone. A significant aspect of negotiating anything is compromise, and if you have an open mind and intend to be respectful and understanding of the other party, you may be able to reach an even more agreeable outcome than you anticipated.
Of course, that respect and understanding works best when it is mutual. If you find yourself trying to negotiate and remain open to the goals of the property owner only to face continual rejections of your goals and an unwillingness to compromise, you may need to cut your losses. Even if you believe you have found the perfect space, you need to know when to walk away. That point could hinge on the amount you feel comfortable paying in rent or other aspects.
Watch out for unfair tactics
While either the landlord or the tenant in these negotiations could take an unfair approach, if this is your first commercial lease, you may want to remain alert to possible unfair tactics. A property owner could see that you really want the property and try to increase the rent or include other terms that are not favorable to you simply because the owner knows you want the property. It is also possible for the owner to issue an ultimatum or give you a take-it-or-leave-it offer without further negotiation.
It may seem disappointing to have to walk away from a commercial space due to such tactics, but it may be the necessary route in some cases. Remember, if the potential landlord is taking such an approach upfront, dealing with that property owner for the duration of your lease may be just as difficult.