Don’t Sleep When Renewing Your Commercial Lease
Feeling tired and overworked? According to a study by the National Sleep Foundation, the average employee in the Greater Washington Region works a 46-hour workweek; 38% of the respondents in their study worked more than 50 hours per week.
You may be surprised to learn that this contributes to many Washington region 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 time to consider the most important negotiating factors.
Being overworked and too little time are not the only reasons tenants can over pay when renewing their lease.
Most Washington DC 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 market data that their landlord gives them at face value and may become hesitant to bring in a Tenant Rep broker to help them 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 three reasons.
1. They do not understand what is at stake for the landlord if they move out.
2. They don’t know what concessions new tenants get when moving in.
3. The wait too long to open renewal discussions and let the landlord control the deadlines.
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 are professional lease negotiators and so are qualified 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 to have better choices if renewal negotiations go awry.
And 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 12 months, now it the time to act. Contact me today for a complimentary lease analysis at 202-321-4529.