What Can Be Negotiated in a Commercial Lease?

Renting warehouse, office, or retail space will be one of your largest expenses when running a business so it’s important to negotiate the commercial lease as best as you can. Market conditions change often so business owners are better off having a commercial real estate agent help them find and negotiate commercial space for rent. Some business owners who are seasoned and have leased commercial space before they may have a better idea of what to ask for. However new business owners are much more disadvantaged in commercial lease negotiations because they don’t know what can be negotiated in a commercial lease.

To help you get started we have listed the most common items that can be negotiated when leasing commercial real estate. If you have any questions or would like help renting Austin commercial real estate feel free to give us a call.

Things That Are Negotiable When Renting Commercial Space

• Rent commencement date
• Base Rent
• Yearly Rent Escalations
• Operating expense caps
• Use of the space
• Exclusive use rights in the building
• Lease term
• Renewal options
• Expansion options
• Sublease options
• Right of first refusal on vacant space
• Right of first offer on vacant space
• Rent abatement
• Tenant improvement allowance
• Landlord construction management fee
• Space planning allowance
• End of lease restoration
• Signage rights
• Parking spaces
• Security deposit
• Personal guarantees
• Termination options
• Repairs & maintenance
• Relocation clauses

These are just a few items that are negotiable in a commercial lease. The impact that each has on your business will differ greatly from another type of business. It all depends on the type of business and your current and future business needs. It’s important to understand the impact that each one of the negotiable items above will have on your business NOW and in the future. It doesn’t matter how great your business is now or how great and successful you think it will be in the future. You should always assume worst case scenarios when negotiating commercial leases.

If you have any questions about what can be negotiated in a commercial lease feel free to give us a call to discuss at 512-861-0525