Remember the term “Ask and you shall receive?” Well, this statement could not be any truer when it comes to negotiating your Austin commercial property lease agreement. You would be amazed by what kind of savings you can experience by not being afraid to ask the right questions. As your commercial real estate advisor, we are here to exceed your expectations and ensure that you are not selling yourself short when it comes to the negotiating process for your future lease. Let’s focus on one area where you can negotiate more than you expect to get, free rent.
Free rent is the simplest reduction a landlord can make and often times landlords will authorize listing brokers to increase the amount of free rent up to a certain amount if necessary to close a deal. With that said, the listing broker has a card to play in their pocket if necessary, but will refrain if you are not ambitious in your commercial lease negotiation. This is where you have the opportunity to be aggressive. As a rule of thumb, aim for one month of free rent per year of lease term you sign (5 months free rent for a 5 year lease). But remember, we are negotiating here and the goal is to aim above that. Asking for your desired amount will automatically make any counter-offer lower than what you want so don’t be afraid to swing for the fence. If you are considering a five year lease go ahead and begin the negotiations at 8 months free months so long as you are prepared to back down to 5 months. Taking a stand for your lease negotiations will not be a deal breaker with a landlord, however, asking the right questions could end up being a deal-maker for you. So remember: Ask and you shall receive! Click here to watch a video about our tenant representation services including client testimonials.
