Feeling tired and overworked? According to a study by the National Sleep Foundation, the average employed American works a 46-hour workweek and 38% of the respondents worked more than 50 hours per week.
You may be surprised to learn that this contributes to commercial tenants paying far too much when they renew their leases. This can happen when renewing a lease becomes a ‘check box’ item on a To Do list without leaving adequate time to consider the most important negotiating factors.
Being overworked and having too little time are not the only reasons tenants can overpay when renewing their lease.
Most professional landlords have a strategic tenant retention program which includes taking steps to make tenants feel good about the relationship. Landlords know that tenants rely upon good feelings when making renewal decisions. So a happy tenant may take the renewal offer their landlord gives them at face value and may be hesitant to bring in a Tenant Representative to help with their renewal.
Most of us see ourselves as good negotiators, but when it comes to lease renewals, tenants often come out on the short end for four reasons:
- They don’t understand what’s at stake for the landlord if they move out.
- They don’t know what concessions new tenants get when moving in.
- They wait too long to open renewal discussions and let the landlord control the deadlines.
- They don’t know the commercial real estate market conditions.
It’s not that they aren’t smart business people. It’s simply that they are experts in their chosen fields and not in leasing commercial property.
So how do you achieve the best renewal when time is scarce?
The solution is to level the playing field with a professional Tenant Rep broker. Landlords and the leasing agents they hire are professional lease negotiators. So are seasoned Tenant Rep brokers. It takes time and proper preparation to succeed in renewing a commercial lease without overpaying.
The best advice for tenants to ensure the best terms on a lease renewal is to start early. Use your broker to get the right market information about rates and concessions. And have other options if renewal negotiations break down.
In a world where we are called upon daily to do more with less, employing a Tenant Rep broker not only saves you time and money, it’s smart business. If you have a lease expiring in the next 18 months, now is the time to act. Contact me today for a complimentary lease analysis.