Making offers in lease negotiations for warehouse space

As a tenant looking for warehouse space or Austin office space , it is very important that you figure out what offer in lease negotiations should you make? In negotiations that is called the “Ideal” , however in reality the settlement of any lease negotiations is going to end up with the best supportable deal you can make, that is where a Commercial Real Estate Broker like Shire Commercial adds value.  There are quite a few businesses that feel with the advent of the internet, using Loopnet and such they have enough ammo to negotiate their own offer and do well at it. The question really becomes, is that all there is to negotiating a lease , just the numbers?  Well the fact of the matter is , if that is all it is then a lot of professional commercial real estate and residential realtors would be out on the streets.

A broker like Shire Commercial is going to give you as a tenant or a buyer a reasonable range of expectations, are we always right on? Most of the time, yes we are because we do this for a living every day and have a handle on the market and what is a reasonable lease negotiation versus what is not.  Making sure a deal is worthwhile is important or you are going to wander aimlessly and may end up with an office or warehouse lease negotiation that could cost you thousands of dollars in mistakes.

Quick advice: A position in a negotiation must be supportable!  Making a ridiculous low ball offer makes a tenant look bad and it especially devalues any extrinsic value brought to you by the commercial real esate broker when you make this type of offer in lease negotiations. The question is, Do you want to be taken seriously?  If so, please listen to your commercial real estate broker’s advice, if you do not want to , then why would you hire them for free support in the first place?  For a landlord , if they ask for too much in lease negotiations then the tenant can be choked and put right out of business which only causes a headache for both parties.  Or as a tenant, if you are not careful, a property could go into foreclosure and the lender may cancel your lease putting your business out in the street.

Keep in mind that as a tenant your worst case scenario or position may change. If some of the concessions you ask for are made but not all of them, then the time comes for you to understand that tradeoffs come into play and being flexible around trading lower value items for higher value needs are important.  Digging in your heels is called hard bargaining and it seldom works for both parties, maintaining flexibility and keeping an open ear to professional advice will get a tenant much further in making offers in a lease negotiation.