People don't get what they're owed in this world. Their bargaining power is rewarded. As a real estate agent, I can attest to this.
As stressful as it may be for most business owners or decision makers, keeping these five considerations in mind will help entrepreneurs avoid some of the most frequent blunders in negotiating a great Houston office space for rent.
Something may always be utilized as leverage, regardless of whether it is in the landlord or the tenant's market.
Use time to your advantage. Most leases take many months to finalize, so don't put off your hunt for a new workplace. Don't allow a shortage of time dictate the terms of your rental agreement.
To increase your bargaining power, keep your feelings about cheap Houston office space for rent a secret, especially from the listing agent or landlord. The broker will be able to negotiate more effectively as a result of this.
Renter's side gains influence when they realize a prospective tenant's need for the space and incapacity to pick somewhere else. Keep alternate choices in mind at all times.
Prepare for the worst, especially when the Houston real estate market is on the rise. A good negotiation relies heavily on being prepared to walk away.
When tenants select a place to live, they frequently get caught up in the prices. Despite the importance of small office space for rent Houston rates, and in particular the gross rate, the length of the lease might have a greater influence on your finances.
Focus on the lease's length and the company's real future demands instead than trying to negotiate a few percentage points off a rate. Rent for a Houston office facility that doesn't work for a firm would likely be higher than what was saved by slashing 5 percent from the leasing fee if the improper term is chosen, according to a recent study.
Rent abatement and tenant improvements are also affected by the lease's duration. This applies to both sides. If you want free rent or greater tenant improvement money, don't commit yourself into a long-term contract. All of these upgrades cost money. Landlords always include these fees in the lease's value. Eventually, the landlord gets his money back.
Despite their skill in lease negotiations, brokers are not attorneys and get a commission for their services. When a lease's value grows, so does the commission rate. Brokers are compensated when a renter signs a lease, but they are not compensated if no agreement is made.
Unfortunately, this arrangement produces a number of conflicts of interests. In the negotiating phase, you should consider hiring a real estate attorney to evaluate the lease agreement and make any necessary changes. However, the lawyer gets paid regardless of whatever location is picked or whether a potential renter walks away.
Be willing to compromise on the safety of your escape routes, in case something goes wrong. You could try to negotiate certain cancelation provisions for tenants who believe they have strong visibility for the next two years but not five.
Remember to negotiate the Houston office space lease. In the end, the tenant is the one who comes out on top. Use your imagination to meet your demands.