You know that running a medical practice is expensive and time-consuming, especially when you need to make sure that everything runs smoothly. However, if you know how to get the most from your commercial lease renewal, you can have a profitable year.
Commercial lease renewals allow you to assess your current position, revisit the commercial market, and negotiate a better lease with your landlord. In this article, we’ll explain what you need to know about commercial lease renewals and how you can get the most from your negotiations.
If you are entering into a new lease or renewing your current lease, work with Tower Realty Partners. We work with healthcare professionals that are interested in starting a practice, expanding their practice, or relocating. We can help you deal with the process of signing a new lease and negotiating your lease renewal. We represent you- not the landlord. We will ensure that you get the best terms possible.
Defining Commercial Lease Renewal Terms
In order to understand what a good commercial lease renewal entails, you must first understand the different terms associated with commercial real estate lease agreements:
A commercial lease is a contract between a business and a property owner for the rental of the property. Many medical practices opt to lease instead of buy because they don’t need as much capital up front.
Commercial Lease Renewal
A commercial lease renewal, on the other hand, is a period in which the business determines if it wants to re-enter the lease or revisit the market and find a new location.
It’s important to understand that commercial leases are more complex than residential leases. Therefore, you might want to work with a commercial real estate broker, such as Tower Realty Partners.
Why is it Important to Get The Most From Your Lease Renewal?
There’s no denying that relocating your medical practice is expensive. This is why the lease renewal is seen as a chance to avoid this hassle and keep a space that is working for them. However, most people don’t realize that a lease renewal is even more important than initial negotiations. After all, getting the most from your lease renewal means:
- You save money/eliminate costs
- You minimize employee stress/turnover
- You get the best terms for extended periods of time
- You prove to your landlord that your practice is important
- You have the opportunity to gain concessions
- You can grow your practice without having to relocate and start over
When you understand these benefits, you will be able to make the best decision about whether to renew your commercial lease or move somewhere else.
Steps to Negotiating Your Commercial Lease Renewal
One of the biggest issues faced by medical practice owners when it comes to commercial lease renewals is that they don’t know what they should do first. Below, we’ll take a look at the steps you need to take during this process to make sure you get the concessions you want.
When considering a commercial lease renewal, it’s important to be proactive by continuously reviewing your lease terms and approaching your landlord several months before your lease expires. In addition, you should monitor market conditions so that you can take advantage of available opportunities, creating substantial long-term savings.
Research the Space & What it Does for Your Practice
Before you commit to a deal, you should take the time to do your research. This includes considering your current space and determining what your business needs to improve the environment and your efficiency.
Plus, this can help you understand what you want from your new lease so you can bring them up during the negotiation process. In some cases, your landlord may be willing to make some updates to the space if it means keeping you as a tenant.
Many times, medical practice owners don’t realize that everything can be taken into consideration when negotiating a commercial lease renewal. You don’t have to stick to the terms already in the lease- you can also work some new ones into it. Keep this in mind during negotiations.
Work Out & Set Lease Terms
Commercial Leases typically run from 5 to 20 years- which means that renewal is a major decision for your company. Therefore, lease terms are one of the most important parts of the negotiation process. In order to determine the best terms, consider your personal and economic factors. A commercial lease renewal affects your medical practice, you, and even your family.
Tips for Getting the Best Lease Renewal Terms
If you are about to enter lease renewal negotiations on your current lease, keep the following in mind:
- Look into alternate spaces and evaluate your options.
- Determine the improvements needed and weigh those against your desire to move.
- Before negotiating, determine your budget, the non-negotiables, and any extras you’d like to have.
- Find out if there are ways to lower your rent based on your lease terms.
- Look into available perks and negotiate to have them included.
There are numerous concessions that you can request and negotiate to have added to your lease, so it works out in your favor. It’s a good idea to have someone in your corner, such as Tower Realty Partners. We are experienced in working with medical providers whether you are just getting started or negotiating a lease renewal. We can ensure that you get what you want and need to make your practice more successful. Contact us
to learn how we can manage this entire process for you, while you stay focused on caring for your patients.