Here are a few final tips to negotiate the best lease for your business:
5. Build in clauses to protect your business. You might consider looking into and negotiating some add-on clauses to your office space lease to protect your interests in the long run. Here are a few add-ons you might consider:
- Exclusivity Clause – this prevents a landlord from leasing other properties on the premises to your direct business competition.
- Sublease – the ability to sublease gives you flexibility if you find your business plans change and want to sublet your space.
- Co-tenancy – a development might have an “anchor tenant” (i.e. a known retail brand), and a co-tenancy agreement protects you from losing customer traffic if that tenant closes by allowing you to end your lease if the landlord does not replace that tenant within a certain time period.
6. What happens if you default? Look into what happens to your tenancy if you default. Will you be closed down without notice? Immediately locked out? Check on these details up front and see if you can negotiate more time for your business if you default, or only pay the month’s rent owed instead of the rest of the money owed on the lease.
An inexperienced negotiator might not be aware of all of these details involved in negotiating a lease, so doing a little research can help you be more prepared to negotiate the best possible lease for your business.