How's business?
We hear it everyday don't we, it's kind of like being asked "how are you doing". Do they really want to know or are they just being pleasant? If your posing that question to most small business owners in the Winter Springs-Oviedo area lately, you might get an earful of *%&^# and &*+#%! Many small business owners are really feeling the crunch of low sales receipt's, smaller profit margins, fewer customers and no relief in sight. Well I've got some good news for some of you: that commercial lease you signed during the boom that's now killing your bottom line during the recession may not be as iron clad as you previously thought.
I'm talking about commercial real estate lease modifications. Have you heard of them? Not likely. Do you think your landlord wants you to read further? Again, not likely. While lease mods may not be a silver bullet for a struggling business, a temporary rent reduction may well provide enough relief to get your business to the other side of the economic downturn. There is absolutely no reason you shouldn't call your landlord today, right now even, to ask for a better rate. Just plead your case factually, be prepared to share some financials and be bold, ask for the rent reduction. Simple right? Not always.
Here's the rub: most landlords are hurting too. Higher vacancy rates, lower rent collections, lease defaults and increasing operating expenses may well be pinching those with the deep pockets too. Count on getting some resistance, maybe even some threats, at least at first. When you hit a stone wall, the landlord won't budge, it's time to call me, your professional tenant lease representative. I work for free!
My track record isn't 100%, I'll admit that. Some landlords are hard headed and unwilling to do the sensible thing; negotiate a compromise. They'll play hardball until the inevitable begins to happen; vacancies and defaults outnumber full rate paying tenants. Those landlord types are the exception though. Most, when presented with a viable modification plan, are willing to make concessions. After all, collecting something sure beats collecting nothing, especially when the latter may soon lead to another "for lease" sign on the property.
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