Whether you’re renting a retail location or an office space for a team, your commercial lease will impact the future of the business. Always look closely at the terms of your lease and negotiate them to meet your unique needs. Use the tips below to negotiate a lease that will fit your budget and promote growth for your organization.

How to Negotiate Your Commercial Lease

1. Prepare an Offer Letter

An offer letter is an effective sales pitch for your business to win the lease, especially if there are other organizations interested in the space. The offer letter should be from your business, not you personally. Include information about who is responsible for the business, how it’s run and for how long, and what you do. Some financial information about your growth projections or last quarter’s success can be useful. At the end, include your contact information and proposed terms for the lease.

2. Consider Your Ideal Length

The typical commercial lease length is around two or three years, though it may vary depending on the type of space and nature of your business. New businesses may prefer a one-year lease in case the business doesn’t succeed as hoped. More established businesses typically want to lock in their desired location and rental rate for longer than two years.

3. Analyze the Property’s Condition

Many leases will offer the space “as is,” but you may need the landlord to handle some repairs or changes before you move in. Clearly outline any changes you want made to the space as conditions of your lease. If you think you will want changes in the future, inquire about the process for having those improvements approved.

Winmar Corporation has connected businesses with their ideal spaces in the Lexington, KY, area since 1951. When you rent office space in their Tate or Bakhaus Buildings, you’ll enjoy modern features, spacious layouts, and abundant free parking. This family-owned property management company is always responsive to the needs of their commercial tenants. Learn more about their office rentals on their website and call (859) 254-5755 to discuss a commercial lease.