You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone: 480-948-5554 Prefer cell: 520-975-5207 or email me walterunger@ccim.net.
CLICK HERE TO VIEW ALL MY 50 MIL WORTH OF LISTINGS.
REAL ESTATE | 9 Jun | AZ BIG MEDIA
Are you thinking about signing a commercial lease on a building?
Before you cross your T’s and dot your I’s, you need to work on your negotiation skills. the price of a commercial lease, just like many other things in life, can be negotiated.
But, how do you negotiate it?
Check out this guide to discover how to negotiate a commercial lease.
- Hire a Lawyer
Negotiating a commercial lease will be a lot easier if you have the right lawyer by your side.
A lawyer can help you negotiate as well as point out clauses in your lease that you may have never noticed. When it comes to hiring a lawyer, you want to make sure you find one that has experience with commercial leases.
While it may be tempting to hire a business lawyer or family lawyer who you’ve been working with for years, you’ll have a much better chance of negotiating a better price if you hire a lawyer who has experience in this arena.
To find the best commercial litigation attorney, we suggest asking for recommendations from friends and family members. You can also look online, just make sure to read reviews and make sure that the lawyer you hire is in good standing with the American Bar Association.
- Figure out Your Budget and Must-Haves Ahead of Time
Before you even dive into your search for a commercial building, it’s very important that you lay out your budget, your must-haves, and your nice-to-haves.
When you have these items laid out ahead of time, you’ll be a lot less likely to budge when it comes time to sign a lease. Plus, this will prevent you from looking at buildings that are out of your price range or that don’t have the right amenities.
- Negotiate With More Than One Place
The building owner will be a lot more likely to budge on the terms of the lease if they know that you have other buildings that you’re looking at.
Therefore, you need to make sure you’re making negotiations with more than once place. This way, you’ll have the ability to walk away from one of the negotiations, which will ultimately put you in a better position.
- Understand the Different Leasing Options
In order to be a skilled negotiator, you also need to understand the different leasing options.
Depending on the type of lease you sign, the overall cost of your lease can vary greatly. Here are the main types of leases:
Gross Rent Lease
This type of lease involves you paying a single amount to your landlord. This amount will cover base rent plus all incidentals.
Incidentals typically include property tax, utilities, maintenance, insurance, and repairs. It also includes common area expenses like janitorial services, snow removal, grass cutting, and landscaping.
There is also a modified gross lease, in which the renter and landlord share in the cost of incidentals. How the cost of the incidentals are split up between the landlord and renter vary from lease to lease. Sometimes it’s a 50/50 split, while other times it’s split per incidental.
Net Lease
The other common type of commercial lease is a net lease. With a net lease, you pay some of the incidentals directly, which results in lower monthly rent.
In a regular net lease, you typically pay base rent plus insurance, utilities, or property taxes. Your landlord then pays for the rest of the expenses.
There’s also something called a double net lease. With this type of lease, you pay rent as well as insurance and property taxes. Additionally, there’s something called a triple net lease, in which you pay rent plus building insurance, utilities, and property taxes.
Percentage Rent Lease
Lastly, there’s something called a percentage rent lease. With this type of lease, you pay the base rent along with a percentage of your gross sales over a minimum.
This type of lease is typically used in malls as well as multi-tenant retail locations.
- Check Area Rental Prices
If you don’t have any idea what other tenants are paying in commercial rent, it’s going to be a lot harder to negotiate your lease.
So, before you go in to sign, spend some time researching local rental prices. You can speak with a commercial realtor to get up-to-date information on rental prices in your area.
- Never Pay the Asked Base Rent
The asked based rent is the amount that landlords ask for upfront in rent. Landlords nearly always ask for the maximum amount they think a tenant is willing to pay.
Therefore, you should never pay this amount, as landlords never really expect anyone to agree to it. When you come in with your counteroffer, you want to ask for at least 10 to 15 percent below this price.
In most negotiations, landlords and tenants end up working out an amount that’s somewhere between this.
- Go for a Longer Lease Term
Above all else, landlords want consistent income. They’re going to be much more excited to lock in a 5-year lease with a consistent, good price than a one-year lease with a really high rental price.
So, if you see yourself staying at the commercial property for a while, try to work out a longer lease term for a better deal.
If you’re a brand new business and you’re not comfortable locking into a multi-year lease, then you may want to accept the higher-priced, short-term lease instead. Then, instead of focusing on negotiating the price, you may want to work on negotiating favorable termination as well as the subleasing clauses.
How to Negotiate a Commercial Lease: Time to Negotiate
Now that you know how to negotiate a commercial lease, it’s time to put these tips to use. Pretty soon, you’ll have a great commercial lease deal worked out.
Be sure to check back in with our website for more negotiation tips and tricks.
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, CREXI. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial en.wikipedia.org/wiki/CCIM FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME – cell: 520-975-5207 or email me walterunger@ccim.net
CLICK HERE TO VIEW ALL MY 50 MIL WORTH OF LISTINGS.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
History of Arizona from 900 BC – 2017 -Timeline.
8 Reasons You Should Invest in Land
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION
ARIZONA FACTS – YEAR 1848 TO 2013
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17
Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience
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Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone: 480-948-5554 Prefer cell: 520-975-5207 or email me walterunger@ccim.net.
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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