There are many reasons to renegotiate your Manhattan office space lease agreement. The most common reasons include:
- Drastic market changes
- Impending financial struggles
- Need to revitalize a business after a long lease term
The manner in which you approach the negotiation table will have a large impact on whether or not you are successful.
Renegotiate Office Space Lease Agreements
There are two things you need to consider before you begin negotiating.
First, you must know what you are trying to negotiate for and why. Obviously you are trying to save money on rent. However, if you’ve been paying a higher rental rate all along, your landlord probably won’t consider giving you a break suddenly. If your company is on the brink of falling behind, or if you have a better offer at another location and you are considering a move, your landlord has plenty of reason to listen to your requests.
Secondly, you must become informed. Are similar office spaces in your area suddenly renting for a fraction of what you are paying due to high vacancy rates or sudden market shifts? Is your landlord listing another office space in the same building for less? Know what current market conditions are and how your lease compares to the properties that are now available. These are bargaining chips when you need to generate numbers based on current fair rates.
Another part of renegotiating Manhattan office space is to ask for concessions. Many people think only about the cash value of their monthly payments and fail to realize that a long term lease can actually burden your company with an outdated space unintentionally. Whether your landlord is willing to budge on rental rates or not, you can always ask for concessions such as new carpet and paint. This is an improvement allowance to during the term of the lease. Another concession would be paying partial rent for the first few months if you renew for a longer period of time. All of these can be equally valuable to the state of your company and should be considered as an alternative to simply adjusting rental rates.
Renegotiate Office Space Lease
If you feel that you have adequate reason and grounds for renegotiating your office space lease, seek the assistance of a qualified commercial broker. They will be able to arrange and handle the difficult negotiations for you by exploring every opportunity for cost savings outside of rental rate adjustments. Come to the table with a clear goal in mind and be prepared to explain why a renegotiation is pertinent. Back your claims up with facts about current market conditions and why your existing lease is no longer suitable.
When you are ready to begin renegotiating your office space lease, contact the Handler Real Estate Organization Team. Our team can help you create an outline and gather data for a better lease today. Just call 212.398-.1888 or click the icon below to contact us now.