Question by Anna: Assist – COMMERICIAL LEASE NEGOTIATION IN BOSTON?
Hi,
I am not even certain if this is the best spot to seek aid for my problem. I am trying to re-negotiate my rent (business) with the landlord and for lack of far better terms, he is getting an a**. Provided the state of the economy, we ask for a rent reduction and contemplating that we’ve been here fro 20 years and paying rent on-time each and every month, that is a quite very good indication that we are excellent tenants. He is not willing to budge at all. We do have a prime location but the searches that I did indicated that I am more than paying by $ five sq/ft. Do you guys have any suggestions?
Best answer:
Answer by PrivateBanker
However you don’t have numerous options if you are attempting to renegotiate an current lease. You did not mention if the lease is assured by any particular person or persons – such a guarantee puts you in an even far more difficult position. Additionally, considering that you didn’t mention what type of organization you are in, the landlord could feel you won’t move because your location may possibly be crucial to your success (i.e. if your enterprise is a restaurant).
You might attempt providing to extend the lease, with decrease payments now and higher payments later. This could be eye-catching to your landlord. Maintain in thoughts, your landlord may possibly have financing (or an ownership structure – i.e. securitization) that prohibits lease renegotiation.
If you do not have a individual lease guarantee the owner can nonetheless go after your enterprise for default. Consider what it would expense you to move your enterprise – not just moving expenses, new tenant finish fees (he would have them too), but also letterhead, advertising, and so forth. I don’t know how many square feet you are in, but these fees might “outweigh” the $ five psf rent differential. Also, I never know what percentage of your rent $ 5 represents so it really is hard to calculate just how far off the market place you are.
Sorry I can not give you greater news.
What do you think? Answer under!
