Blog Entry dated 3/25/2009 2:49 PM

Survival Tips In Tough Times – Commercial Lease Savings!

The current economy demands that business owners and large corporations alike, look for ways of cutting costs. One major way to cut cost is to look at all of your leases and determine if you can re-negotiate the lease with your landlord. Many think this cannot be done until the end of the lease. This is not the case. Landlords are desperate to keep Tenants in buildings and hang on through these difficult times. The secret is to find what helps the Landlord and what helps you. Sometimes, an extension of your lease for a few years will allow the Landlord to re-negotiate the existing terms of your lease and give you rent relief. A great idea if you understand the dynamics of what the Landlord needs right now.

If you are not sure what to do, don’t be paralyzed with indecision. Get your lease documents and any correspondence that you have had with your Landlord organized. Contact the Leasing Representative for your building anonymously and ask for current rental rates for similar space to yours. Go on the web and find your building or Landlord site to determine what they are publishing as current rates and availability. Then, when you are ready, contact your Broker or Tenant Representative and ask them their opinion. Be factual and calm. Don’t let the emotions of re-negotiation cloud your vision. As someone who holds a degree in Psychology – Human Behavioral Theory, I can tell you that in these moments it takes patience and thoughtful analysis, not fear.

If your Broker or Tenant Representative tells you that you have no chance, don’t accept “no” for an answer. The Tenant Representative that you dealt with may have a relationship with the building that they do not want to jeopardize by bringing up such a sensitive issue as a re-negotiation. Above all else, don’t call the building representative yourself. They will only hear you pain, not your need. They will also tend to say “no” without thought to the positive aspects for all.

If you get nowhere talking to your Broker or Tenant Representative, or would like to have a one-on-one no obligation chat with me about your situation, give me a call. We can explore the possibilities. If you are in the State of Texas, I can act as your Tenant Representative and the building will often pay my fee. If you are outside of Texas I can work as your Consultant. We can discuss any fees if you determine that my services would be of benefit.

Sonny Moyers
Realty Advisor & Real Estate Broker, State of Texas
Cell Phone: 469-261-5715 or Email: Sonny@SonnyMoyers.com