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    These 3 mistakes could cripple your next office lease negotiation

    Negotiation is an art, and making these mistakes could cost you big.

     

    In a renewal situation, they will ask if the tenant is seriously willing to leave. If the landlord and its broker sense any weakness in the posture created by the tenant, they will not offer terms that are truly competitive to the tenant. Many landlords also see it as a weakness if a consultant or out-of-state attorney is handling the negotiation for the tenant because there is no local market knowledge. The same is true when tenants attempt to represent themselves.

    It is also crucial to the posture to begin the negotiations at the proper time — ideally one year before the current lease expires. If there is insufficient time to plan and buildout a space, then the landlord will know the tenant’s options are limited, weakening the posture. Strong posture causes the negotiation to be more favorable than merely bartering with a landlord.

    Related article: How to time your next dental real estate transaction

    Leveraging a local real estate professional’s expertise and then dictating favorable terms to a landlord yields consistently more favorable terms to a tenant than simply asking for a price and then asking for a lower price.

    Strong posture is not about bluffing or threatening. Having multiple legitimate options and a credible willingness to choose the other property creates an environment where landlords compete to attract or retain quality tenants, and ensures they get competitive terms. Expert representation by a real estate professional is available at no cost to tenants, because their services are paid for by the landlord or seller as part of the listing agreement with the landlord’s broker.

    The current commercial real estate market has fully recovered, and it is more important than ever to be prepared during lease negotiations. Avoiding these pitfalls will help tenants achieve more favorable terms for their practice and their bottom line.

    Carr Healthcare Realty
    Carr Healthcare Realty is the nation’s leading provider of commercial real estate services for healthcare tenants and buyers. Every ...

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