So your lease is almost up and the question has arisen – Do I renew, or do I move? This is a LARGE and multifaceted decision so let’s break down the intricacies to ensure you are making the best decision for your unique business.
It can be easier, but is it cheaper?
Moving can be a pain, especially if you are trying to run a business simultaneously. So its quite easy to understand why statistics show that over 70% of commercial tenants renew their lease rather than look elsewhere. Sounds simple enough, right? Wrong. Unfortunately, that little 70% renewal statistic up there is extremely well known by landlords and helps account for most of their profits when all is said and done. Landlords understand that moving can be quite a time-consuming endeavor and since time is money, landlords prey on business owners who don’t understand their value to the landlord (More on that later).
Because most tenants do not want to pay out of pocket to build a new space it has become extremely common practice for landlords to charge premiums to their tenants when they look to renew their lease. Most tenants are okay with this because they feel as if avoiding the moving process all together justifies this additional expense. After all, what can be done? If the space still works for your business and you want to avoid moving, this seems to be the only option right? Fortunately, wrong again. Read on to learn how to flip the script on your landlord.
Understand, you are the value.
While many tenants see this premium as the “Cost” of avoiding a move the fact of the matter is this, you are far more valuable to your landlord than your landlord is to you. Landlords are much more worried about you exploring other options and leaving them tenantless than you are about moving. Sometimes just simply giving off the perception of a potential move will motivate the landlord to offer much more aggressive renewal terms – saving you time and money.
Coughlin puts the value on you.
With Coughlin Advisors being Tenant-Only, we believe that the value and thus negotiating leverage always remains in your corner. We go to work on your behalf to negotiate terms and find alternative options to secure the best fit. Our candid honesty will leave you ready to make an informed decision – because after all, the decision is entirely yours. To learn more about how we combat overaggressive premiums and flip the script to make you the valuable party please feel free to contact us.