Every business owner should know that the right commercial space can be key to your success. The space must be suited to your operations with all necessities to efficiently run your specific type of company. If you need to attract customers in-person, the location and accessibility of your space will be key. Finding the right space and moving in is only the first step, however, as you will have many considerations when the expiration of your lease term approaches.
Some people assume they will keep renewing their commercial lease since it is convenient not to have to move a business. But it is important for owners to carefully assess their options, examine whether moving would benefit the company’s bottom line and also, whether any lease terms may be re-negotiated in their favor before renewal. You may think you have two options – to sign or not to sign. However, as with any contract, you have the right to try to negotiate and amend terms of a commercial lease before you renew it. An experienced business attorney can help you determine what course of action is right for your situation. The following are only some things you should discuss with your attorney.
What is your property doing (or not doing) for your business?
Sometimes, you may move into a commercial space believing it is perfect, only to find over time that there are certain inconveniences or inadequacies that are affecting operations. Examine whether the configuration of your space is optimal for your business. If not, you may be able to negotiate changes to the space with your landlord if you renew or try to search a spot that is better-suited. In addition, if your business has grown or the needs of your employees have changed, you should assess whether the current property has the necessary space and amenities for an ideal and efficient work environment.
What’s the market like?
Stay informed of the commercial rental market in your area and any new development or economic changes. Conduct careful research with the following questions in mind:
- Is your rent still competitive?
- Can you pay lower taxes in another area?
- Will another landlord offer more favorable lease clauses?
- Has the competition changed in your area?
- Is a space available with greater amenities, advertising opportunities, or accessibility?
- Such answers can help you decide whether to move and can also be used as leverage in lease negotiations with your current landlord.
What can help your position in negotiations?
Negotiating with a landlord can always be intimidating (after all, they also have the power to not renew the lease) though there are ways to hold a stronger position in negotiations. Never give your landlord the impression that a renewal is guaranteed. If you leave, a landlord may lose rent, have to make expenditures to improve the property, and will have to pay for marketing to lease the vacancy. If they think you’re willing to leave if negotiations are unsuccessful, it can strengthen your position. In addition, having a skilled business lawyer conducting negotiations can often increase your chances of obtaining more favorable terms.
Contact a Houston Business Law Firm Today
You should always have your lawyer review any possible changes to your commercial lease terms and advise you of your options when it comes to lease renewal. If you would like to discuss your options when it comes to lease renewal or any other legal matter involving your business, please consult with a Houston business attorney at The Weisblatt Law Firm. Call 713-352-0847 or contact us online for more information.