One way to approach renewing your office space lease is to put yourself in your landlord’s position. Instead of thinking of your landlord as being on the opposing side of negotiations, consider how you can work together to achieve a deal that benefits both of you. Here are some tips for working with your landlord during renewal negotiations, as suggested in the article, Eight Tips for Negotiating an Office Lease Renewal:
Consider Your Landlord’s Concerns
Think for a moment about the main concerns your landlord has. Landlords are typically interested in avoiding difficult rental situations, the value of their spaces, and the current income (cash flow) they are making from the property. Be aware of how your landlord might prioritize these three things and how they fit together. For instance, property value and cash flow are related: property value is calculated based on cash flow during a certain amount of time, with a consideration of cash flow in the future. So you might be able to negotiate for lower rental rates during certain periods in exchange for paying an increased rate when your landlord needs that higher cash flow (i.e. when they are thinking about refinancing).
Find Savings for Both Tenant and Landlord
Both you and your landlord have the same goal of avoiding the difficulty and expense of relocating. Just as you do not want to set up in a new space, your landlord does not want an empty space on their hands and the headache of soliciting new tenants, negotiating a new lease, and dealing with improvements. And if you have been a reliable and respectful tenant, they might prefer continuing a relationship with you over the unknown. Talk with your landlord about the ways that your renewal can benefit them as well, and keep in mind the other party’s needs and concerns as you negotiate.
Sometimes concern for your landlord’s needs can result in a good deal for both of you!