The Importance of Negotiating for Lease Flexibility

Part of growing your company, productivity, and corporate identity is finding the commercial office space to fit your unique needs. The right commercial real estate can help you not only to connect with clients and other businesses but also to develop a healthy company culture. Finding that space and then securing an agreeable lease can be a challenge, particularly if your company is growing. If you are looking for new office space, consider working with a commercial real estate agent in order to negotiate for increased flexibility and freedom in your commercial lease agreement.

• Improvements and Renovations: Negotiating for commercial lease flexibility may allow you the opportunity to make improvements or modifications to your space. This can be crucial if the space available does not fit your spatial or functional ideals, especially if you plan to expand. In addition to allowing for improvements or alterations, a commercial lease may also include an agreement on who will design and execute the changes and when the renovations will be completed.
• Rental Rates: Your commercial real estate broker will negotiate for increased flexibility in the rental agreement, including the rate and duration. Some landlords may increase the rental rate on a property over time, so it can benefit business owners and companies to secure a fixed rental rate or rate flexibility in the case of income changes.  
• Length of Lease: Breaking a commercial lease can have significant financial consequences on the tenant. If your company is set to see short- and long-term changes, lease flexibility can protect your interests even as your needs and goals evolve. Your commercial real estate broker can help you negotiate for terms that allow you to move spaces without penalty, for example, if you are no longer able to run your business efficiently from a particular location or office.

For more information about commercial lease agreements, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.