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Modern Architecture
Writer's pictureRenee Ervanian

NEGOTIATION: STAYING AT THE TOP OF DETAILS




At lease expiration, when considering renewal or relocation, STAYING ON TOP OF DETAILS may save significant TIME, EFFORT AND MONEY.



*Know your current market options upfront, whether lease renewal, a new lease or a purchase. Identifying more than one option creates negotiating power.

*When submitting a preliminary lease proposal or offer, assertiveness in addressing the details may create significant difference in the final outcome, reduce misunderstandings as negotiation moves forward, create more tradeoffs/concessions in final negotiation and prevent a transaction from falling apart after much time and effort was invested.

TO ITEMIZE JUST A FEW: 1. Disclose the limitations of executing a personal guarantee and limiting liability.

2. Address the required financial information, such as two years of tax returns and if they are readily available for submission.

3. Address a final move/lease commencement date and the cost involved in holding over in your current location if the new premises is not ready on time.

4. Address the necessary parking and additional monthly cost. Many times, tenants assume parking will be free, but covered, reserved parking is rarely free throughout the entire lease term.

5. Know what internet providers service the building.

6. Are terms included for an early exit or buyout, if necessary.



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