Lease negotiation · Guide
How to Prepare for an Industrial Lease Negotiation
Start early, build a real alternative, and compare the full lease instead of focusing only on the quoted rent.
Prepare to negotiate
Time and real alternatives improve your position
1Start early
2Find an alternative
3Compare lease terms
4Set a deadline
Better business terms
Start early
Your landlord may already understand how hard it would be for you to move. If you wait too long, the renewal may become your only realistic option.
Start early enough to find and test at least one real alternative.
Compare more than the quoted rent
The starting rent is only one part of the lease. Also compare:
- rent increases
- free rent
- operating expenses
- repair obligations
- expansion or contraction rights
- assignment rights
- renewal options
These terms can create more value than a small change in the starting rent.
A real alternative improves your position
You do not have to want to move. You need enough time and information to make moving a real option.
Preparation creates leverage before the negotiation begins.