If you can provide one great phrase of advice for business owners who have a lease expiring within a year, it is this: don’t procrastinate!
Your lease is extremely important in that it is often the second largest business expense for your company. If you can reduce the cost of that expense or at least get a better or larger space for the price you are paying, why aren’t you doing it?
Our falling economy is causing a lot of financial stress for many businesses and few companies are finding positive effects on their bottom line, but if you are a tenant….you are in a tenant’s market. It’s very rare in the commercial real estate industry and should be taken advantage of while it’s a possibility for you.
The tenant’s advantage is this: the market is providing an abundance of availability in space for lease, particularly office space. This means that landlords need to be more aggressive in their offers so that their properties stand out in the crowd. While not every owner is going to be willing to concede to the cheapest deals, many will because for every vacant space they have they not only are losing the potential rental income but they are also paying out of pocket to cover the pro rated portions of that vacant square footage portion of the building’s taxes and operating expenses. You, as a tenant, are an amenity at this time! You are not at the landlord’s mercy…but the landlord is at yours.
Now is the time to call a tenant advisor and discuss what is available and possible for you. The market is overwhelming and confusing, but with the help of a tenant representative you will easily see the advantages you will be able to share in at this time. Don’t waste another minute overpaying on rent. Use this time to your benefit and be prepared for some great opportunities. The time couldn’t be better for a tenant!
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