How to negotiate a commercial lease in NYC
Having a business in New York City is surely one of the best things you can do. This is one of the biggest business centers in the world. A lot of people move their businesses to New York City when they want to expand and grow their business. If doing so, renting a commercial property is what you will be doing. It pays off much more to rent a commercial property rather than to buy one. Real estate in NYC is very expensive.
Even if you have enough money to buy one, doing so is not such a good idea. Especially if you are just starting a business. Plus, buying a commercial property in New York City is not so easy because not a lot of them are actually for sale as people know that they would earn much more by renting these spaces out rather than selling them. This means that you will have to rent a commercial property for a while. This is why we decided to write this article in order to help you to negotiate a commercial lease in NYC the best possible way.
Start searching for a property on time
The first thing you need to know when searching for a commercial space in New York City is that you need to start searching for it on time. New York City is very busy when it comes to the real estate market. Office spaces rent out especially fast there. This is because a lot of businesses are moving from and to New York City all the time. Especially when. you are searching for a commercial space in Manhattan. Hence why if you really want to find the perfect office space for your business in the location you want
you need to start searching on time.
Searching for a commercial property in NYC can last a very long time. You also need to have in mind that you will also need to negotiate a commercial lease in NYC which can also last a while because there will be other people interested in the property if it is in a good location surely. This is why hiring a good real estate agent to handle this part of the process for you is the best idea to do.
This goes for any assistance you may need to relocate your business. Movers are quite busy in New York City which is why you have to hire them in advance as well.
Consider long-term leasing
Once you manage to find a property you like and would want to rent, you have to go and meet with the owner, see the property in person, and get more information about it. Most landlords offer short-term leases because they do not know how well your business will do and will you be able to pay the rent for the property. But if you have an already good-working business, you can offer to sign a long-term lease. Especially if you like the property and it suits all your needs.
A lot of landlords will find this appealing as they will be certain that for a year, two, or more, you will be there, renting it. For the landlord, this means that they will have a steady income from you paying the rent for years. When you mention that this is a possibility, you can negotiate a commercial lease in NYC for a lower price. This is why when moving your business to NYC with brooklynmoversnewyork.com, it is best to do so when you already have a good-working business with a steady income so that you can be certain that you will be able to pay rent for such a long time.
Make sure that you are able to end the lease if needed
Even if the landlord agrees on a long-term lease, you still need to negotiate on a way to end it earlier if something happens. This usually means you have to pay a large amount of money to end it. But you have to agree on the sum of money. It is usually a couple of rents worth. This is a general rule if the opportunity to end the lease earlier exists.
Some landlords, if you do not negotiate a commercial lease details on time and you decide to end the lease earlier, will ask you to pay all the rents that are left until the lease ends. This could be just a couple of months but if you decide to end the lease much earlier, this can end up being a very large sum of money.
Be fair and honest
Do not try to lower the price of the commercial property too much. This will leave a bad impression on the landlord. Be honest and offer the price you would put for the space you want to rent out. Lowering it too much is very impolite. It shows that you are not serious as you are trying to get the most for a small amount of money. Have in mind that there are also a lot of people looking at the same property as you are as this is New York City we are talking about. This means that there are certainly people who will offer more money than you which, of course, means that they will much rather accept that offer rather than yours