If you have an upcoming lease commercial expiry it might surprise you to learn that Landlords typically expect to receive premium rental rates from a tenant that is renewing compared to a new tenant in the market because Landlords will estimate a tenants moving expense and they’ll try to factor this cost into their renewal proposals.
The biggest mistake that we see firms make when negotiating a renewal on their office or industrial property is that they don’t allow enough lead time to negotiate effectively.
Lease renewal options usually require that you give notice to the Landlord anywhere from 6 to 18 months prior to the lease expiry. But if you wait to when you are within that period and give notice, then you have lost most of your negotiating leverage since you have no choice but to renewal.
Your negotiating strength comes from having choices. This is where we can help by creating a competitive arena and leveraging the most cost effective alternatives in the market bidding for your company as a tenant.
So the key here is to begin discussions well in advance of your notice periods to convince Landlords that the threat to move is real or they will never table their best deal.
CBRE is the world’s largest commercial real estate services company. We partner with more companies to acquire real estate than anyone else in the world, which gives us the resources, experience, resources, market knowledge and credibility to achieve the best results for you.
In short, we save you time and money and make your life easier when it comes to lease negotiations in the Greater Toronto Area.