When it comes to negotiating Austin Office Space leases or lease renewals most Tenants assume that Listing agents have their best interests in mind and will give them the best deal possible. Contrary to that belief the Listing Agent works for the Landlord who is paying them a commission to lease the space for the highest rent possible. For this reason it’s important to be prepared to negotiate aggressively to keep the office rental rate down.
The following are a few ways to ensure you get the lowest possible rental rate on office and commercial properties in Austin:
- Consider hiring a competent Tenant Representative who specializes in Austin Office Space Leasing. Since they are active in the market every day they know a good deal when they see one and can give you peace of mind while saving you a great deal of time and money. Just like you are an expert in your business they are experts in office and commercial leasing in Austin, Texas. You are not typically charged a fee to use the service of a tenant representative because they split the commission that the listing agent has already negotiated with the landlord. So why not put some of this money to use for you?
- Talk with other tenants in the building – You can learn a lot about the landlord’s track record of how they manage/service the property and how they treat the tenants. Other tenants are typically willing to share their experience, whether they plan to stay or move, and if their rent is too high.
- Look at other options – Even if you would prefer to stay where you are it’s important that you research other options. You never know…you might end up saving thousands by relocating your office. It pays to create competition for your tenancy among several landlords.
- Flinch – No matter what lease rate you are offered always act surprised that quoted rent rate is high. If you act like the rate is not a big deal then you lower your chances of reducing it.
- Expect Counter offers to go back and forth – In most cases the Listing Agents first offer is never the best offer. Do not get offended if their first offer is not what you expected. In most cases counters offers may go back and forth a few times before all parties have agreed to terms. Negotiating is a process, not an event.
- Be prepared to walk away – Try not to get emotionally involved in an office lease deal. If you don’t like it……walk away. In some cases I have had clients walk away from deals and seen the landlord come back two weeks later with a better offer. If you don’t have other options and get too emotional you lose negotiating leverage.