Lease Negotiation

In the commercial tenant-landlord relationship, the unrepresented tenant is at a significant disadvantage. Most landlords are represented by commercial listing agents, and even for those who are not, they are normally far more experienced with commercial leasing than the business tenant.

Entering into a commercial lease relationship is not a single event. It is a long term relationship.

How do you make sure your interests as a tenant are protected?

Commercial interests are best protected by proper consideration of the individual circumstances.

Most leases are typically drafted in favour of a landlord. To their detriment, tenants sign them with little consideration as to the ramifications. This does not mean a landlord is trying to be tricky; rather, the landlord is simply protecting its own position. So as a tenant, it is up to you to make sure your interests are protected as part of the negotiation.

Landlords will often be prepared to modify their standard lease if reasonable changes are requested.

What should a tenant be thinking about before signing the lease?

There is more to a good negotiation than a slight discount on the rent.

You should consider:

  • Rent-free periods
  • The exact use of the premises
  • Options for further terms
  • Rent Reviews

The above are just a few examples.

When negotiating, it is important not to be aggressive or a game player. Landlords like tenants who are upfront and clear in what they want and why they want it. You want to think win-win. An experienced commercial leasing negotiator will know how hard to push and what should be expected from the lease negotiations.

Our lease lawyers can assist in this lease negotiation on your behalf. To find out more or to speak to one of our lease lawyers, contact us on 1300 907 335 or complete the enquiry form to discuss.



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