A commercial lease in Washington, D.C. lasts longer than a residential one, so market conditions often fluctuate quite a bit between when your lease term begins and when it ends. For this reason, it may benefit you to try to negotiate new lease terms that may prove more favorable for you and your business.
When negotiating your commercial lease renewal, you may find that you have more success if you take the following steps.
Start the conversation early
If you want to change your existing lease terms when your lease comes up for renewal, it is ideal that you ask your landlord months in advance. That way, if he or she refuses to compromise or negotiate, you have time to explore other options.
Know what your landlord stands to lose or gain
Your commercial landlord may want to keep you in the space if possible because finding a new tenant may prove risky and time-consuming. It may also mean the space stays vacant for a period, which might lead to financial losses for your landlord. Understanding what he or she stands to gain or lose by keeping you in your space gives you more bargaining power.
Know the market
Having a solid understanding of what options are out there may also strengthen your negotiating power. Even if you plan to remain in your existing space, knowing what other properties offer and what terms other landlords offer may help you incentivize your landlord to keep you around.
Many business tenants find that having someone with considerable knowledge of local markets and commercial leases helps them negotiate the most favorable lease terms possible.