Lease Negotiation

Negotiating is a core skill at Your Leasing Co. We have been negotiating commercial leases for over 25 years and have completed over 1,000 lease transactions.  We are in the market every day and have access to the same information or better than Landlords and their agents. So, before we start a negotiation, we have a very good understanding of where we should be landing on a deal. We don’t stop there, we continue working to improve on that position for our clients.

Negotiation is a specific skill and just like most things, the more you do something, the better you get. Especially when it is an activity like commercial leasing.

For a lot of Tenants, negotiating is a challenging and frustrating experience. This is generally due to a lack of certainty that comes from not having the same level of information as the Landlord and Landlords know this. Things like the underlying market trend, access to recent and comparable leases completed, industry benchmarks and the history on the property being considered. Also, most business owners are time poor and simply don’t have time to research this information, let alone know where to find it.

Combine this with the challenges around understanding the leasing process and getting the right mix of interconnected lease terms, leaves a lot of Tenants wondering… “have I negotiated a great deal… or not?” or “how much did I leave on the table?”

No two leasing deals are alike. The mix of the terms and essential lease elements are different every time, reflecting the primary needs of the Tenant and the Landlord. Our depth of technical experience and commercial approach enables us to develop creative solutions to complex leasing negotiations.

Typical negotiations we regularly undertake include:

  • New Leases
  • Lease Renewals
  • Agreements for Lease
  • Letters of Offer / Heads of Agreement
  • Surrenders of Lease
  • Lease Assignments
  • Make Good Arrangements

The primary elements of a lease negotiation include:

The Lowest Rent

We provide rental certainty through our market information, professional property networks and comparable leasing data. Landlords are aware that most Tenants don’t have access to market information and often set advertised rents well above the market.

Combining our market intel with our negotiation experience is your advantage in bridging the Landlord/Tenant power imbalance.

Maximised Incentives

Leasing incentives, fitout contributions, rent free periods, rent abatements, work done at the Landlords cost and rental side deeds are examples of incentives that are often worth $100,000’s of dollars.

These are privately negotiated arrangements and the only real way to know how much you can ask for and how many incentives you can package up, is by being in the market and having access to market knowledge.

 

Flexible Terms

Fast growing businesses need to have flexibility built into their leasing arrangements that allow them to adapt to market conditions. Things like being able to have a first right of refusal over adjoining tenancies for growth, the ability to review rent mid term, sublease and fair and reasonable provisions to end a lease early if market conditions change.

 

 

Make Good & The Fine Print

Most commercial leases have a requirement for vacating Tenants to return the tenancy to its original condition or make it good before the rent will be turned off. We often see Landlords holding Tenants into a lease until their heightened expectations, in excess of the lease requirements, are met.

Having a professional in your corner to review the fine print and who can confidently enforce industry acceptable practices could save you $100,000’s of dollars.

 

 

Interested in finding out more?

Call our FREE phone hotline 1300 356 702.

Hear From Our Clients

I approached Mike for some advice on how to approach my landlord regarding my rental situation and the information he provided me was fantastic.

He looked at my turnover situation and gave me clear and concise advice as to how to approach the landlord and he also prepared a spreadsheet as to how much rent I needed to pay the landlord.

Mike also provide me information as to the process if the landlord was not willing to work with me.

In this difficult time for all small business when the last thing you want to worry about is the rent you need to pay you landlord. Mike’s understandings of the code of conduct and measured approach was second to none.

The time and work Mike saved me was amazing!

Anthony Cavallaro
Managing Director
Ray White City South

Your Leasing Co assisted me in March 2020 to renegotiate my lease. I’ve always gotten on ok with my landlord, however I felt quite intimidated and hesitant to ask for rent relief/reduction at the start of Covid.

Mike at your leasing co walked me through it step by step in a patient and simple manner. He even helped me draft the email.

I’m pleased to say that through Your Leasing Co’s coaching and structured process, I no longer have any hesitations to present a strong case to my landlord for relief/ reduction of commercial rent.

Victoria Butt
Managing Director
Parity Consulting

Kelly Cunningham originally helped us with a rent re-negotiation on our business premises some years ago. Then when the next review was due, she gave us advice that we could do substantially better by not renewing the lease. We took her advice and asked her to locate an alternative premise that would suit us in all respects.

The result of the search Kelly did for us and her negotiations with the new landlord on our behalf was that we were able to relocate the whole business to more appropriate premises with everything we needed including much better staff and client parking. Plus, the best thing of all - Kelly secured a much lower rental cost for us.

I would have no hesitation to engage Kelly’s services again for any help with our commercial premises leasing. I highly recommend her to anyone needing advice with lease terms, negotiations with landlords or location of alternative commercial premises.

Devon Barnes
Director
Lindfield Speech Pathology & Learning Centre

Amanda and I would like to thank Kelly and Mike for the fantastic and professional job they did for us in extremely testing times. To run any business, we all face difficult situations, but to try to fund a Beauty Clinic in Melbourne during lockdown is something of another story. Kelly and Mike were always hard but fair to our Landlord and all parties were satisfied in the end.
Thanks again

Amanda and Peter
Peaches and Cream

Kelly from Your Leasing Co was an amazing help. Not only was she thorough with going through what I needed for my business in terms of leasing, she was so informative and knowledgeable. I was stuck with what I needed for my business and the options she was able to give me, helped me have more clarity in my leasing and where I stand with my Landlord. Thank you very much for the time you took to read go through my lease and take my calls and emails out of office hours. Will definitely recommend Kelly and Your Leasing Co and would use them in future where needed. Thanks Kelly.

Toni Katsaros
Elysian Hair Beauty Spa

Kelly and the Leasing Co Team were amazing to deal with. We were referred by an industry leader and the word of mouth certainly did not disappoint. Kelly worked tirelessly for us to find the perfect site. There was on going consultation to ensure that we were on the same page and navigating to find the ideal outcome. Kelly was the go between working her magic to produce the best possible outcome by negotiating and securing an incredible offer for us. We would highly recommend Kelly and Your Leasing Co. An absolute pleasure to deal with.

Esther Trapp
Urban Skin Spa

Let’s stay in touch.

Stay on top of commercial lease negotiations with our free tips and advice, delivered straight to your inbox.

You have Successfully Subscribed!