In the event that you have ever owned a business or managed operations for any size of a business, the chances are great that you’ll likely realize that a commercial lease is an important part of any business. Any lease that is in your favor will help establish the foundation for long-term business success, meaning that it’s absolutely necessary to do your best in order to ensure that the lease will work for all of your specific needs. Furthermore, since the document will help to define the overall relationship that you have with your landlord, both you and your attorney should always take an extra amount of care during the actual negotiation process in order to ensure that you come to terms that will always remain functional and beneficial for both parties.
Here are three of the best ways to help negotiate a commercial real estate transaction.
Establish a Budget Beforehand
When you finally have a more general idea of what it is that you’re looking for, the time will come to establish a budget. This is a range or number that you should determine firmly prior to even approaching a landlord so that when negotiations actually begin, you won’t actually commit to something that ends up being out of your price range. Regardless of how nice any one property may end up being, if it ends up costing more than the remainder of your business expenses combined, that can only end up eating into the rest of your profits at the end of the day.
Make an Offer
Another way to help with negotiating a commercial real estate transaction is to make an offer. When you are finally aware of everything that there truly is to know about your possible property, the time will finally arrive for you to make an offer. There are always different areas of thought in regards to whether you should start low and work your way up to the overall market value through the process of negotiation or if you should instead start closer to market value as a way to prevent yourself from insulting the seller. It’s important to keep in mind, however, that this is something that can end up being more situational and dependent upon what all you may know about the seller. In the event that you’re leasing, for instance, this type of process can be much more tricky. When the time comes to finally make an offer, you will need to ensure that you have an expert at your side, so prior to making the first move, be sure that you speak with an attorney or a commercial real estate agent.
Treat All Involved Parties With Respect
One other great way to help with successfully negotiating a commercial real estate transaction is to make sure that you treat all involved parties with respect. This is a part of the negotiation process that is often overlooked, and it’s also one that can really make or break virtually any deal. It’s also important to note that this is something that should always be done regardless of how heated or strained negotiations may end up getting. Keep in mind that you never want to alienate a potential landlord by appearing to be too hostile or emotional, even if you personally feel that the situation has possibly become tense and you believe that the other party isn’t truly deserving of any respect whatsoever. Always make sure that you keep all of your personal feelings to yourself and stay both professional and calm, all of which will ensure that you are served very well in the long run.
If you own a business and need legal advice, skilled Austin, TX business attorney Brad Reeves can help. At Reeves Law, experienced lawyer Bradley Reeves understands the complexities of business and commercial legal processes and is committed to using his expertise to help you reach the best outcome in your case. If you have questions about how to proceed, contact Reeves Law for a free consultation.