Renewing a Lease
A situation can then arise where Landlords dig in their heels and Tenants feel that all their goodwill in being a quality tenant has not translated into any benefit. It can be very similar to negotiating with your cell phone provider after being a “valued” customer for 20+ years – they treat you about the same as a new customer, or worse.
Therefore, if you are faced with the situation of renewing a lease, whether as a Landlord or a Tenant, it is important to implement the services of a broker who can fairly and accurately facilitate the negotiation, providing value to both parties involved. It is not always about price; having a professional broker can help salvage both the relationship and the deal itself.
In a recent lease renewal that our team was involved with, we learned the lessons of patience and self-control. Right out of the gate, the two parties, Landlord and Tenant, appeared to be quite far apart in their expectations of the terms of the deal. However, through a patient and thorough negotiation process, coupled with real market data, our persistent and professional involvement brought about a successful outcome. In the end, the Landlord did not want to lose the Tenant and the Tenant did not want to lose the space. Stepping back and focusing on what was truly important helped both sides resolve their contentions and come away very satisfied with the outcome.
In an ever-tightening market, one of the most successful outcomes of these negotiations was that the Tenant never lost control or right to the space they occupied, and this was far more valuable than the reasonable rate increase they had to absorb. For the Landlord, paying a small commission to the broker on the renewal was also well worth the time and energy they saved themselves, in addition to ensuring that they were getting an accurate and fair lease renewal rate.
If you are facing an upcoming lease renewal, whether as Landlord or Tenant, contact us today to begin formulating your plan for a successful outcome.
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Christopher J. Destino, SIOR, a Principal at Lee & Associates, is an engaging, responsive professional who enjoys working closely with his clients and helping them succeed.
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