Commercial lease negotiations lawyers

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 one-off event; it’s a long-term commitment with ongoing responsibilities for both parties.

Landlords with experts can navigate the complexities better, while businesses often lack the same understanding.

Having an experienced legal expert is crucial for a balanced and smooth commercial tenant-landlord relationship.

It is a long term relationship.

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

Protecting your commercial interests means thinking about your specific situation carefully.

Usually, lease agreements are made to benefit the landlord. Sometimes, tenants don’t realise this and quickly sign the agreements without knowing what could happen later. This doesn’t mean the landlord is trying to be tricky; they’re just looking out for themselves. So, if you’re the tenant, it’s important to make sure you also take care of your interests when you’re talking about the terms of your commercial lease.

The good thing is that landlords will often agree to change the standard agreement if you ask for reasonable changes. This means you can talk to your landlord about things that would work better for you, as the tenant.

Even though the agreement might seem like it’s in favour of the landlord, tenants can make it better by requesting changes. This way, both you and the landlord can be happy with how things are set up.

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

A successful negotiation involves more than just getting a small reduction in the rent. It’s important to think about other aspects too. Here are some things you should consider:

  1. rent-free periods: This means having some time when you don’t have to pay rent at the start of your lease. It can give you a chance to set up your business and get things running before you start paying rent.
  2. the exact use of the premises: Be clear about what you’ll be doing in the space you’re leasing. Different activities might have different rules or requirements, so it’s important to get this right from the beginning.
  3. options for further terms: Think about whether you want the option to renew your lease when it’s about to end. This way, you won’t have to worry about finding a new place if your business is doing well and you want to stay.
  4. rent reviews: Consider how the rent will change over time. Sometimes, there might be regular reviews where the rent goes up. It’s important to know when and how this might happen.

These are just a few examples of things a tenant should consider during negotiations. They can have a big impact on how successful and smooth your time in the leased space will be. So, don’t just focus on the rent amount; think about these other factors too.

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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