No Personal Guarantee Needed
In many cases, no personal guarantee is needed when signing a commercial lease in the present economic climate. It's just a matter of firm and sound negotiating techniques. Commercial real estate sales and leasing activity in most areas is just as bad, or worse, as the residential real estate market.
Most commercial Landlords are experiencing high vacancy rates and when they have a prospectiv
e Lessee they are willing to make concessions, including waiving the personal guarantee. Lessee's with the financial ability and courage to move forward in the current economic climate are hard to find. Landlords are willing to compromise to get any rent out of vacant properties.
Recently I talk with 2 small business owners, (who were not clients of mine), that had rented office space. Neither one had to sign a personal guarantee. They both told the Landlord that if a personal guarantee was needed, they would go elsewhere. Both Landlords readily tore up them up.
This is a Lessee's market. Push hard for concessions, including no personal guarantee.
Wayne B. Pruner is a Realtor® at Oregon First, who works in the Portland and Tigard, Oregon area. He is ready to help you with all your real estate needs and he is also a licensed contractor. His phone number is 503-891-0795. Here are links to his real estate website and his real estate blog.
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