If you are attending the 2018 Nightclub & Bar Show in Las Vegas (and who isn’t?), you can’t afford to miss The Lease Coach workshop titled “Negotiating Commercial Leases & Renewals FOR DUMMIES.”
One of your top overhead costs is leasing commercial space, and many of you will be facing lease renewal negotiations soon.
Here are three debunked myths commercial landlords want bar tenants to believe.
Myth #1: The tenant should wait to be approached by the landlord.
The tenant needs to initiate the lease renewal dialogue with the landlord or his/her property manager. We recommend doing so at least 12 months before your term expires, or at least 6 months before the renewal option deadline. At The Lease Coach, we like to do all the negotiating we can to get the best lease deal possible – without exercising the renewal option clause at all. Bar tenants need to be proactive. If you wait until the landlord comes to you it could be too late for you to gain any leverage or traction.
Myth #2: Rental rates have to increase each year.
The Lease Coach doesn’t just negotiate lease renewals for tenants – we specialize in negotiating lease renewal rent reductions. With all your other operating costs rising you don’t need a rent increase as well. We’re not saying it’s easy to get a rent reduction, but it’s worth it. The savings could make or break your bar or nightclub and even determine if you can sell it in the future. Once your rent gets too high it doesn’t make any money and no one will want to buy it.
Myth #3: Only the rental rate is negotiable.
One of The Lease Coach clients was asked what we accomplished on his lease renewal. The list of answers was long but he emphasized that we got him a rent reduction, free rent to offset his cosmetic remodel, his deposit returned, and the elimination of his personal guaranty. You only get the chance to renegotiate your lease once every 5 or 10 years, s0 make the most of it! And, if you need commercial lease negotiating help from a professional, get it.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please email your request to [email protected].
Dale Willerton and Jeff Grandfield of The Lease Coach are commercial lease consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail [email protected] / [email protected] or visit www.TheLeaseCoach.com.