4 Tips to Successfully Negotiate on Commercial Property Lease
You might not realize, but the commercial leases are usually mined with traps that can be the potential undoing of business owners and organizations. So before investing a huge amount for a commercial lease, equip yourself with some basic ideas that’ll help you to dodge the worst leases lurking in your way.
Whether you’re at a start-up stage looking for low-cost office space Or you’ve just owned a growing company that has actually outgrown its current space now, you’ll have to be in the market in the end for a better location, square footage, and some benefits from the property owners. When it comes to the lease agreements, these are often one-sided, having landlord setting the terms such as; monthly rent, who will pay utility bills, length of the lease, and other essential factors.
Therefore, it’s imperative for you to negotiate the lease terms to make this turn up lucrative for you as well. Here’re a few useful tips you must consider when negotiating against commercial properties in Dubai.
Work with a Commercial Property Broker
The landlord knows the commercial space inventory as well as the average per-square-foot price. But frankly, you don’t. Therefore, a reliable commercial property broker will get you the information you need in order to make an informed decision about a property. An experienced broker will not only help you get your business in place faster but also save you time looking at properties that don’t fit your requirements.
Haggle – It’s Important
It’s understandable that the landlord has got a lease in his hand. But that doesn’t mean you have no right to haggle for some favorable terms. The commercial property owner will lose money every month that space sits vacant. That’s they the landlords are always excited and motivated about finding a new tenant for their commercial property. In most cases, the actual rental amount will be closes to what’s normal in that area. But you have all the right to counter with lower monthly rent.
What will be the worst in that case? The landlord will say ‘No’, and you’ll move to the next point. Keep in mind! Don’t be afraid to Haggle. It’s quite simple! You want to rent that space and the owners want you to have it. So you must negotiate the terms that can save you a good amount of money every month.
Know Exactly What You’ll Get
For instance; you’ve been told that the office is a total of 6,000 Sq. Feet and you’ll be charged accordingly. But you don’t realize that the landlord has also added in the hallways & stairs as it’s the way to get to the office. For obvious reasons, you can’t put any desk in the hall, but it’s being calculated as a part of your office space. And you know what! You’ll have to pay by the square foot each month that adds up the space you can’t even use.
You can also read out the lease thoroughly. The lease would say hallway is your space, but the reality is quite converse. Therefore, make sure you bring the tape to measure while visiting the potential space to know what you’re exactly getting and paying for. Only count the space that’s usable.
Get the Commercial Insurance
When it comes to renting the commercial properties in Dubai, the property owner will definitely require you to have insurance on the space you’re willing to rent. So make sure you look for the favorable costing on business insurance policies. However, the rates will vary depending on your areas. Make sure you don’t have to go with the lowest price. Choose the best deal as the more coverage areas, and higher policy limits will deliver better value.
In case the property owner requires more coverage than your current insurance, ask if they can lower the minimum insurance you need to carry as part of the lease. Keep in mind! This is one of the phases where concessions can be easier to get.
