Things You Must Not Skip When Renewing Your Commercial Lease
Are you a business owner with a commercial space that is taken on lease? If your current lease is expiring and it is due for renewal shortly, there is a lot you need to consider. What are the terms you need to change during the renewal or what do you want to keep intact?
When renewing your commercial space for lease in Kelowna and Fraser Valley, you need to discuss with a law practitioner first to ensure that you safeguard your rights. Once you have a detailed discussion with a lawyer, you need to discuss with the landlord and try to negotiate favourable terms. Here are things you can negotiate during the renewal of your commercial lease:
- If you’ve had a rather uneventful tenancy, you will be up for a flawless and smooth negotiation during the renewal.
- Is your lease unprotected? Do you want to continue staying on the same property? In such circumstances, both you and the landlord are free to discuss the terms.
- When you have a protected lease, you may not have to go through more changes.
Remember that if you want to change or modify the general agreement terms for the tenancy like repair or service charges, the rent amount is likely to go up significantly.
Process of renewing the commercial lease
You are anticipating a renewal of commercial property for lease in Kelowna and Fraser Valley but when the time comes nearer, you may feel apprehensive about doing many things. The decision to stay in the property may mean that you are happy with the current terms even though you are anticipating a few changes. Surely, the negotiation should be a lot easier this time as you already gained experience when renting commercial property. However, you must treat the renewal process just like the first time as it will allow you to leverage those circumstances where you will have a lot more potential to include more favourable terms or prevent the rent amount from increasing exponentially.
Here is what you need to remember when negotiating for renewal of a commercial lease:
- Be alert about the current renewal conditions
Have you done your homework when leasing a commercial space for the second time? If you are yet to screen the current market conditions, try to find out how the occupancy rate has changed since the last time. What is the scenario of the rental rate increase in your locality? If the area has good prospects for more construction, the rates are going to be lower. Similarly, the rental rates may go up during the renewal of the lease if the owner took up renovation of the property. Once you get answers to these questions, it will help you make a better decision.
Commercial markets change and fluctuate more often, and it might look different from the time you leased the space. So, consider those changes and make sure you have all the information at your fingertips. If your current office space is located in a highly demanding area and has all those features and attributes that you need, you will have fewer chances of negotiating for a price reduction. That is why you need to have an expert to assist you side by side. Emil Anderson Properties is one of the renowned property developers in Kelowna and also aids in the commercial space leasing process. Ask the experts about the current market conditions so that you are better prepared to negotiate the lease on your terms.
- Include a break clause
- Lease Duration
- Read between the lines
If you are not certain about keeping the business unit in the same space as the present one, try to include a break clause. That way, you can get the opportunity to move out of the premises before the term ends.
When renewing office space for rent in Kelowna and Fraser Valley, you need to keep in mind the duration of the lease. Find out what the typical length of the lease is in your area before deciding to sign on the dotted lines.
If you have never read the lease before, you need to go through it once again as what you accepted the first time may no longer be acceptable in the current scenarios. Just make sure you sit down patiently to read between the lines to get surer about what you want to renew.
When considering a renewal of the commercial space for lease in Kelowna, you need to research the alternatives in the market. Think about what suits you best when negotiating the renewal of the lease to get a better rental rate and concessions and superior amenities in the new office space.