Six tips to negotiate your commercial lease renewal

Lease renewal time presents an opportunity for companies to assess their current position as a renter, revisit the commercial real estate market and use that information to negotiate a better lease agreement. If you position yourself as a well-informed tenant that understands your leasing options and how they relate to the evolving needs of your business, you can ultimately secure a better deal and earn back a portion of your occupancy costs.

This came into play with a recent client who was initially apprehensive to employ a broker. The client had already engaged the landlord in lease negotiations but was unhappy with the outcome.

To fully understand needs and goals, we sat down and talked business specifics. JLL helped the client to realize that they did not need the originally allotted amount of space. With our help, the client was able to renew the lease about six months early, reaping immediate savings. The client was also able to give back a portion of unneeded space, at a 15% lower rate than originally negotiated.

In cases just like these, it is pivotal to know your value in the market—and for your landlord specifically—and leverage it accordingly.