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3 Ways to Justify Rent Decreases

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Besides claiming that you are a young, growing, and cash strapped business that the landlord should help out of the goodness of his heart, I always found a few methods helpful.

1. The first one was to discuss the other spaces you are looking at using the real financial terms with the broker and or the landlord. Once they realize you might go elsewhere, they usually will attempt to cut to the chase and put their best foot forward.

2. The next technique is to attempt to phase your growth into the space. For example if the space is 2,500 square feet, you begin with the justification that you need 1,500 square feet now, but will need the 2,500 square feet a year from now. If you are signing a 3-5 year lease, the landlord should be willing to let you pay as you go which will strongly help the economics of what you are trying to accomplish.

3. Negotiate the rent as far as the landlord will move and then move on to concessions like free rent or tenant improvements.

Written by jmiller

February 5th, 2010 at 4:58 pm

One Response to '3 Ways to Justify Rent Decreases'

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  1. Great advice (this coming from a commercial real estate agent). Particularly point 3 - landlords will frequently throw in an extra month of free rent or new coat of paint to get the deal done.

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    Chris Fyvie

    15 Feb 10 at 7:31 pm

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