Rental Reality February 2010

If there is one key to leasing space today, it is for both the Landlord and the tenant to be flexible. The Landlord in most cases will not be paid  a 2007-8 rental rate and most landlords have adjusted to the new rental reality. The Tenants must allow the landlord the ability to shorten the term of  the lower lease rate period  allowing for a modest recapture of value, adding a reasonable rental increase in the future. If you are thinking what is the incentive for the tenant to allow the Landlord to be paid a rental increase later in the lease…keep in mind a majority of Buildings have mortgages and the Banks will allow a Landlord to lower the monthly rental rates…but not on a long term basis. I strongly suggest that a Landlord/Tenant lease is more like a partnership that should be a win/win for both parties. No one wins in the long run when either party is inflexible. It is best when both parties in a negotiation leave some money on the table. Take that money and go to lunch or dinner with your partner…. I mean either your Landlord or your Tenant.

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1 Comment

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One response to “Rental Reality February 2010

  1. Ely Zimmerman

    I like your educational perspective from both sides of the table. Knowing that you recognize the importance of win-win solutions enhances my trust that you are a sophisticated negotiator.

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