While talking to companies and business owners all over the Austin metro area about finding office, retail, or warehouse space one question that is frequently asked is whether or not the services of an Austin commercial real estate agent will help them when negotiating lease renewals. THE SHORT ANSWER IS..YES!
You would never walk into a courtroom without an attorney, so why would you want to negotiate an office lease renewal on your own? Below are a few reasons why you should use a commercial broker when negotiating a commercial lease renewal:
1. Just because you have a lease with one landlord does not mean you are not free to negotiate a new lease with another landlord. Before just blindly signing an office lease renewal contract it’s always a good idea to “shop around” to see what other opportunities are out there………..and having an experienced commercial agent in Austin who knows what space is available and how to negotiate is ideal.
2. If you don’t create competition between landlords and make them fight for your tenancy you will never get the best deal possible. Having an experienced broker on your side helping you gather and analyze all the information is crucial. Obviously your existing landlord wants to keep you however you need to make them aware that you are looking at other options. This will encourage them to put their best foot forward. You commercial agent can help you research all possible options and do an apples to apples comparison of each property to ensure you make the best decision.
3. You need to treat the lease renewal process just as you would when leasing a new space. When negotiating lease renewals you essentially have a clean slate. Having a commercial broker on your side who knows the market can ensure that you get the same rent and tenant improvement concessions just as you would if you were leasing new space.
The way commercial real estate agents get paid on lease renewals depends on the landlord. Most landlords will pay the brokers commission, which has no negative effect on the deal you get. However in some cases a landlord may not be willing to pay a commission. If that is the case then the broker will work for a fee paid by the tenant, however the fee will be minimal compared to how much time and money you save on your renewal contract.