Now that you have finally found a suitable place for your warehouse, it’s time to initiate the process of lease agreement. Remember, negotiating the lease in your favor is a crucial step that you can’t afford to mess up.
The real estate owner usually prepares lease agreements and then discusses them with the warehouse tenant. You have the right to demand clarification if there’s anything you aren’t aware of. However, you must know the correct ways of negotiating the lease agreement in your favor.
1. Discuss with a Commercial Lawyer
If you’ve already included a lawyer for searching commercial warehouse space for rent near me, then also discuss your lease with them. It’s possible that the agreement involves some legal or complex terms which you aren’t familiar with. Discussing it with a commercial lawyer will give you a clear picture so you don’t sign without understanding everything.
2. Length of the Lease
Once you’ve finalized a location that meets your requirements, you’ll meet with the owner and apply for a lease. After that, you’ll receive some forms to fill out for your lease.
The very first thing to notice is the length of the lease. No one can commit for a long term, so negotiate it for a year or two so you can see how it goes. You always have the option of renewing your lease.
A short lease benefits business owners if they move to another location after some time. Or if they find a warehouse location with lesser rent in the future. This way, you won’t be legally bound to one place.
However, you should consider a long-term lease if you’re into the food business.
3. Survey the Market
Before committing to one property owner, you must survey the market, learn about the rents currently demanded, and compare it with yours. This way, you can negotiate with your landlord and know if they’re asking for an unjustified amount. Connect with a realtor to get up-to-date information about the market rates. If the asking price is too high, this information can help you negotiate a lower rent.
4. Termination Policy
Many unforeseen scenarios can come in the way, leading to the agreement’s termination. Therefore, it’s essential to carefully read the termination policy of this agreement and negotiate it reasonably. Similarly, if your landlord demands eviction, he should at least give you a sufficient notice period so that you can find an alternate and move. Should you wish to leave before the lease period ends, you should discuss any penalties for early termination.
Embrace Change, Take a Fresh Start
While searching for commercial warehouse space for rent near me, you were already prepared to take a leap of faith and move to a warehouse. Now that you’ve finally found it to your liking, it’s time to smartly get a favorable lease to put yourself at peace. Follow these ways to negotiate with the landlord so you know that it’s a lucrative deal for both parties.
