Negotiating Your Toronto Commercial Real Estate LeaseEverything is negotiable when negotiating your toronto commercial real estate lease! Never say yes to first proposal. This is one of the first tenets of negotiation and one of the most ignored by small tenants of all types. No matter how good a proposal my client gets from a landlord, when negotiating your toronto commercial real estate lease it is never the best that we can negotiate. In fact, we go back and forth until we get the rock bottom lowest rent and the best TERMS. The LeaseMax lease negotiation technology ACTIVATES. competition and allows my clients to become the reluctant buyers. A reluctant buyer gains negotiating stature. When negotiating your toronto commercial real estate lease the landlord doesn’t know which building you really prefer and becomes fearful that he will lose the deal, he becomes much more flexible in terms and conditions. If you've have hired a Accredited Buyers Representative when negotiating your toronto commercial real estate lease who lets landlords know that other buildings are competing for your tenancy, you can be reluctant in negotiations. Through your buyer broker, you can let the landlord know that other proposals have been better than his and you are considering them. Especially when you are renewing yuor lease when landlords realize that it may be expensive and inconvenient for a tenant to move, they usually give you a high offer thinking you'll likely take it. A landlord who quoted you a renewal rate of fourteen dollars but could still make money at ten dollars will tell me that they could really go to twelve dollars. “Just bring me an offer” they’ll say. You’ll 'reluctantly” do so if you want to stay but it won’t be at twelve dollars and we’ll negotiate for free rent and leasehold allowances. This is an excellent strategy to get a leg up on the landlord before the negotiations even begin. Just watch out that the landlord doesn’t become a “reluctant seller”. Another thing to remember when negotiating your toronto commercial real estate leaseis that no landlord does a deal, he doesn’t want to do. I can’t count the times after particularly grueling negotiations the landlord asked me when was I going to bring him another tenant. One landlord even went as far to tell me that he wished that I had been representing his side and then went on to recommend me to a friend of his who had a lease to negotiate. I saved my client eight dollars per square foot over the initial proposal from the landlord and he was still happy to do the deal. The worst thing that can happen to a landlord, no matter what an exorbitant deal he proposed is for a tenant to accept it. He always thinks “I could’ve done better”. I know how they feel because the last car I bought I offered them what I thought was a absurd price for the car minus my trade in. They took it and I always felt, you guessed it “I could of done better”. The time before that it took me four hours to negotiate a deal and I went home in my new car very satisfied. I only wish there were Buyer Brokers for cars. I know I’d hire one in a flash. There are a lot of inside tricks in the car business and I know they always get the best of me. So never say yes the first offer or your landlord will always be dissatisfied. If you get a better price when negotiating your toronto commercial real estate lease he’ll be happier even though he has less rent in his pocket.
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