In commercial real estate, real estate transactions are sometimes the subject of lengthy negotiations. To unblock a situation, it is possible to identify a negotiating lever and thus reach an agreement that satisfies both parties. To rent the commercial space of your dreams, you sometimes have to agree to make concessions. This also applies to owners. As real estate agents, we are at your side to identify these different levers and achieve a fair transaction.
1st negotiation aspect: rent
The amount of the rent is of course a major element in negotiations relating to a real estate transaction. But it is possible to unlock a situation by offering a progressive rent. This is a lease that provides for the evolution of the rent in stages.
This solution offers an advantage for the lessee who will pay less at the beginning of his installation and will be able to finance the beginning of his operation more serenely. As for the owner, this allows him to further enhance the value of his walls since the last level may be much higher than the current rental value. In addition, it also ensures the sustainability of the tenant’s business by allowing him to start his activity under the best conditions. However, if his business generates a good turnover, he is guaranteed to be paid regularly and to rent his premises.
2nd negotiation aspect: the rent exemption
The rent exemption consists of the granting of months of free rents. Of course, this type of benefit gives the owner the right to compensation.
The most frequent counterpart is the takeover by the lessee of renovation or fitting-out work.
It can also be a commercial gesture by a landlord who does not want to reduce the amount of rent but agrees to lower the total cost of rent.
Hidden rent exemption: early delivery of keys
Another negotiating lever can be an early handover of the keys. This amounts to a hidden rent deductible since the tenant will not pay rent during this period.
3rd negotiation aspect: the duration of the lease
The purpose of an owner is to rent his premises. As soon as it is unoccupied, the owner loses money. If the lessee is able to make a firm commitment to rent the XXX year premises, some landlords will be able to accept a rent reduction.