Negotiating a Commercial Property Lease

When the commercial property sales market slows, the lease market generally picks up in most areas. On that basis the commercial property agency specialist should really know both roles and tasks well. This knowledge helps you move across the rents, documentation, and leasing strategy with your greater than average level of success.

When it comes to commercial property, the tenants and the landlords that we work with are usually quite familiar with property processes and alternatives.

Right now these are the issues in many leasing situations:

  1. The landlord wants the high rents of 3 years ago and refuses to listen to you about today’s comparable rents
  2. The tenant wants the lower rents of today given that they have been looking around and they know that it is a tenant driven market
  3. The landlord claims that they are prepared to wait for a tenant to come along at a higher rent (no matter how long it takes)
  4. The landlord doesn’t want to spend money on the premises until they find a tenant
  5. There are plenty of comparable properties on the market that compete with your listings
  6. Tenants take a long time to make a leasing decision
  7. Tenants want lease incentives as part of the new lease

All of this says that the average lease negotiation is slower, complex, and more detailed. Every commercial leasing specialist should be a first class negotiator; this mantle requires thorough practice and process.

Most lease situations today take an extensive amount of time and negotiation. Build your leasing listings and deals on the back of dialogue and negotiation practice.

You can get more tips on commercial real estate agency practice at

By John Highman

John Highman is an International Commercial Real Estate Author, Conference Speaker, and Broadcaster living in Australia, who shares property investment ideas and information to online audiences Worldwide.