How to Get More From Your Commercial Landlord
In this article, we will discuss how to become a more valuable tenant to attract landlords to offer more benefits. You might also want to read the article about what commercial landlords are willing to give to the tenants in a previous article and video.
If you’re looking to rent commercial space, you may be wondering how you can get more out of your landlord. While every landlord is different, there are several ways you can make yourself more valuable and increase your negotiation power. Here are some tips to consider:
Large Brand Name/Franchise:
If you’re from a well-known brand or franchise, you’ll likely have more leverage. Landlords want popular and successful tenants, so having a recognizable brand can work in your favour.
Landlords want to rent to tenants who can afford to pay rent on time and maintain their space. If you have strong financial statements that demonstrate financial stability and long-term success, landlords may be more willing to negotiate with you.
Deposits show that you have the resources to pay for your space and fulfil your lease obligations. Typically, you would pay for a 3 months deposit of net rent, plus TMI with HST on top. If you can provide a larger deposit, it may demonstrate that you’re financially responsible and increase your negotiation power.
Many landlords prefer long-term tenants, so signing a lease for a longer period of time can make you a more valuable tenant. If you can commit to a 10-year lease with options for renewal, you may be able to negotiate more favourable terms.
Large Square Footage:
Tenants who rent large spaces are more valuable to landlords because they can generate more revenue. If you’re interested in a large space, you may have more negotiation power.
Show Your Experience:
Landlords want to rent to reliable tenants who have experience in their business. If you can demonstrate your success and experience, you may be able to negotiate more favourable terms. An experienced real estate broker will help you create a profile about your business so that you can demonstrate how good you are to the potential landlords. Especially, if you are new to running a business, this could mean if the landlord is willing to lease you the space at all.
Show How You Can Benefit Other Tenants:
If you can bring value to other tenants in the mall or plaza, landlords will see you as a valuable tenant. Provide a profile of your company and how it can benefit other tenants in the same premise. For example, if your business has synergy with other tenants and complimentary which can bring more foot traffic to the other tenants, highlight that in your profile.
Remember, negotiating a commercial lease can be challenging, and it’s important to have a good real estate broker to represent you. You get what you pay for. Hiring a subpar broker will get you a subpar result. A skilled broker can help you navigate the process and negotiate favourable terms with your landlord. By following these tips and working with a good broker, you may be able to get more from your landlord and secure the commercial space you need.