Have you looked at a commercial real estate lease lately? If you can get past the mind-numbing boilerplate language and coma-inducing wordiness, they look pretty much alike.
They all cover the same legal ground. It’s easy to be lulled into a perception of monotony.
This perception couldn’t be more wrong. Lease deals are like snowflakes – no two are alike. Notice I said “deals”. The language in the final contract may look familiar but every building and every
landlord faces unique circumstances that are recognizable by a good real estate broker and can be leveraged in lease negotiations.
- Has the space been vacant for a long time? Pressing for more free rent up front could be rationalized by the landlord – “This space hasn’t generated revenues for nine
months…what’s four more?”
- Did the building recently change ownership? The new landlord is probably anxious about getting his asking rent and might be willing to invest a little more capital in tenant improvements to get it.
- Is a landlord converting his old industrial building to creative office? Push the high-tech credentials of the tenant as a feather in the landlord’s cap.The negotiations get easier from there.
- Is the tenant an immigrant and a start-up business? (Yes, I’m working with this guy right now.) This might look like two quick strikes against his chances of even getting the landlord’s attention but I pushed his “American dream” narrative thinking it might remind the family who owns the property of their father’s or grandfather’s humble beginnings. The leases are out for signature.
A real estate broker that can sniff out the unique dynamics in play at every property you look at is a hound dog worth keeping around!
