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Rob Fanjoy

Guide to Renewing a Commercial Office Lease

Negotiate the best deal for staying put


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It would seem that renewing your property lease would be a simple thing, but there are some common and costly mistakes you could make. Sometimes market conditions are in your favor and you can save money by renegotiating some key details.

Some of the most common things to consider include:

  1. Renegotiating a security deposit.
  2. Obtaining a refurbishment allowance.
  3. How to make the owner aware that there is competition for you as a tenant.

Action Steps
The best contacts and resources to help you get it done

Legal help


If you're planning on asking for lower rent or more space improvements, you'll want to document that, with facts regarding lower foot traffic than represented or a downturn in your industry, for example.

I recommend: Often, you may need a lawyer's help to negotiate the best deal on a commercial lease. If you don't have one, you can find one at Lawyers.com. Also, you can research real estate law and get advice in their Real Estate section, which has a quick guide to Commercial Leasing.

Analyze proposals and responses to proposals


There may be many elements in both your and the owner's proposals and responses that need comparison. Learn all you can about what you can ask for and what the owner has to provide before you sign.

I recommend: Commercial real estate guide CityFeet.com has a large Business Resources section with a fairly comprehensive Leasing Guide to give you a little more than the basics.

Make a checklist


In many states, commercial leases are not covered under consumer protection laws that normally safeguard tenant rights. Therefore it is critical that you carefully examine every aspect of the lease and renegotiate a favorable term before signing.

I recommend: At Business.gov, the official business link to the U.S. government, you can find helping advice on leasing in Launching Your Business, Pick a Location and Leasing Checklist.

Tips & Tactics
Helpful advice for making the most of this Guide

  • If you need to resolve a dispute, mediation or arbitration is often better than court.
  • Figure out exactly how much space is being rented and which areas are included. Finding discrepancies in reported space and actual space rented can be a powerful bargaining tool.
  • Make sure that the portion of the utilities you agree to pay is in proportion to the percentage of the building that you occupy.
  • If your business fails or if the location no longer suits your needs, one option is to sublet; find out if you have the lessor's permission to do so.

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Find Qualified Commercial Agents In The Western US
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Find Commercial Real Estate by Location, Price and Property Type.
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 Related Resources from Business.com Back to top 
 Best Sites to Learn MoreBack to top 

This reference sites includes information on the basics of commercial leasing, as well as links to related message boards and chats.

This DIY legal site and provider of printed legal guides includes tips on how to negotiate the terms of a commercial lease.

This site provides commercial property listings and supporting information, including a guide to consider before you enter into a commercial lease.

Features an informative list of Frequently Asked Questions about commercial leasing.

Explains the leasing process.


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