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A GREAT Time to Renegotiate Your Office Space Lease

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With office space vacancy rates at recent time highs, office rental rates down as much as 30% in many office markets and no bottom found in the woes for office building owners, now is a great time to renegotiate your lease. Even if you have 2 or more years left on your current office lease you may be surprised at the willingness of landlords to renegotiate. It is not a market specific phenomena, but one that is nationwide. It doesn't matter if you lease office space in Manhattan, Chicago, Houston, Denver, Los Angeles or even small markets such as Fresno, Raleigh or Rochester. Every office space market has been affected.   Many office building owners are having financial difficulties not only on the occupancy side, but also on the mortgage side. If a landlord has a refinance coming due, you may find yourself in a great position to blend and extend.  What this means is that you would extend your office space lease for another 3 to 5 years at a lower rate in order for the landlord to show to their office building lender that they have long term office space tenants.  No office building owner will agree to reducing a financially strong tenant's rent, unless the restructured agreement provides them with some sort of economic benefit. In this case while you are paying less rent, it turns out to be a win-win situation since your new lease will help in the refinance process for the office building owner.

How do you get this process started?
The best way is to contact your Local OfficeFinder Office Tenant representative. Office Tenant Representative services won’t cost you anything and they are professionals at negotiating office leases. OfficeFinder Office Tenant Reps average over 12 years of experience and many have advance designations earned though demonstrating their skills and knowledge. It is a no lose proposition for you. Give them a try. There is no obligation.

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3 responses to “A GREAT Time to Renegotiate Your Office Space Lease”

  1. Gene K. Says:
    Interesting point concerning lease rates. Even given specific examples, such as office space for lease los angeles, it may indeed be in your best interests to renegotiat your lease, provided that your landlord is willing to do so. Vacancy rates, even in this example, do certainly play a role, and even though Los Angeles' vacancy rates may be lower (14.3%) than the national average (17.4%), there is still plenty of opportunity to renegotiate in a renter-friendly market.
  2. James Osgood Says:
    Renegotiating your office space lease in Los Angeles now would be especially advantageous since L.A. office lease rates have dropped significantly from their highs of a couple of years ago. Office rental rates in Los Angeles will undoubtedly increase quickly as soon as the market turns. Now is the time to renew, blend and extend or renegotiate your LA office space!
  3. John Says:
    One more factor to consider is the financial strength of both the building owner and the tenant. This can have a dramatic impact on the level of concessions that are offered and received in the end.