Before your commercial lease comes up for renewal in Minnesota or North Dakota, you may want to consider other options or think about how your space might better suit the needs of you and your business. Most commercial leases last between three and five years. Because these leases are so lengthy, you may not have another opportunity to negotiate your lease for quite some time.
Per Jones Lang LaSalle, it may benefit you to approach your landlord about your lease well in advance of it renewing. This gives you time to not only negotiate, but also look for alternative commercial rentals if you fail to come to an agreement. During lease negotiations, it may help if you do the following.
Recognize what your landlord might gain (or lose)
Unless you were an irresponsible or late-paying tenant, your landlord probably wants to keep you right where you are. This helps him or she avoid losing money if the space is vacant. It also helps your landlord avoid having to go through the motions associated with finding a new tenant. During negotiations, you may be able to use this to your advantage.
Know your market and show your landlord as much
It never hurts to see what else is out there when it comes to commercial rentals. If another commercial space comes with better amenities or a better rate, you may want to let your landlord know you are exploring your options. That way, he or she may be willing to make similar accommodations to keep you in place.
When negotiating a commercial lease renewal, it pays to showcase how much you know about your options and the local market. The more prepared you are during negotiations, the better your odds of landing a lease agreement that suits your needs and works in your favor.