What happens when you found out that a number of office buildings are simultaneously offering attractive leasing deals to your lease applications? It’s natural to feel at a loss on how to decide on your ultimate choice. The most important thing to do at such instances is focusing on the bigger picture. You need to define your business needs. You need a clear financial plan elaborating how well you will manage your business while in the new business premises.
First, it is necessary to look for the tiniest possibility to negotiate on leasing cost so you can make the most out of your business. When you have several deals, it is paramount to hedge them against each other. This allows you to maximize your potential to negotiate. The following tips will make the entire negotiation process fruitful for you.
Make use of a formula
You need to be fully prepared when approaching the negotiating table. If you do not have adequate information with you, you may end up making a random choice. Leasing agents are fully aware that typical tenants (renting for the first time) are usually out for the lowest rental price. While this is true, lower price may not always guarantee a property with state of the art facilities.
Moreover, it is often a common mistake on the tenant’s side particularly if they do not have an agent. If you want the best office building, you need to be willing to dig deep into your pockets. First, start by looking into the total value of leasing. With an agent, you will be able to make rational bargain on a great office building.
Constituents of monthly rent
For a fact, you will always come across that business person who brags about paying the lowest rent monthly. As mentioned earlier, there is definitely more to the leasing deal than just the monthly payment. If you come to think of it, there are taxes, lease length implications and annual increases among others.
The last thing you want is paying significantly less for a property that not only inconveniences your business but also poses the risk of losing potential clients. If you come across low pricebuildings. You need to consider monthly constituents and their implications. You need to consider whether the office building will be able to propel your business to success or drag it down to failure. The long-term objective of the business is profit maximization and expansion.
Working with creativity
What if you are currently working on a growing business that needs as much financing as possible in the course of the first several years of operation? How do you go about the matter? In most cases, commercial agents recommend trying out creative approaches to meet your business needs – continual maximization of revenue down the line. You can find an affordable office space for lease through Toronto commercial real estate agents and make a proposal for a cheaper rentduring the first part of the term (and backload it later). This allows the landlord to regain part of the rent owed in the first term at the end of the lease term.
Make use of available funds
Sometimes you may be lucky to get funded or even have sufficient cash in the bank. In such cases, it is advisable to negotiate with the landlord over free renting. This is achieved when you decide to sign a lease and make payments for several years – three years or something. A good number of landlords are likely to consider your offer as compared to spreading the cost over the rental term. On your part, this is a great deal. Nothing sounds good to the ears than the sound of certainty and assurance when you pay fully for 3 years lease and getextra free months ahead. This approach allows you to focus on the essential goas of the business. Therefore, make use of creative approaches and you will always have the best deals.
Taking the price lower
The most important objective of bargaining is to take the price lower. It is important to know the limits of bargaining, where to start and where to stop. You may miss out on potentially great deals by simply turning off the landlord. Therefore, you need to know how to make reasonable proposals that have benefits for both parties. To get the lowest price, you need a list of all available office buildings with their respective prices. This is usually a vantage and can help you to find a better office building with an affordable price without compromising quality of service.
To be able to negotiate better, you need to work with commercial real estate agents who deal in leasing, selling and buying property. These agents have more insight in the industry and can offer you great help when looking for a good office building. An affordable office building that increases your business value and creates more networking opportunities is the right choice for your business.