What Are Commercial Lease Incentives?
If you’re looking for your first commercial property, you’ve probably heard a lot about rental incentives, but you might be wondering why they’re so important.
Understanding what they are and how they work can help you when negotiating before you sign a lease, and when renewing the terms of your lease.
In this guide, we help explain a bit more about commercial rent incentives.
What is a commercial lease incentive?
Commercial lease incentives are enticements offered by the landlord to encourage the tenant to sign on.
Landlords desire high quality, long term tenants, and so in a competitive market with high tenant vacancy rates, they are more likely to offer incentives to encourage new tenants to sign on.
There are some lease incentives that can be a great benefit to you and your business (such as rent reductions), and there are others that aren’t really worth your time negotiating for (such as gift cards or small cash incentives).
When it comes to figuring out what lease incentives will best help your business, it’s important to assess your needs and long term goals. Once you know what you need, you will be in a better position to get it.
Rent decreases can come in many forms, such as rent-free periods, half priced rent or just a good old fashion reduction to the rent price.
These are some of the best lease incentives you can get, because it frees up the cash flow in your business, and gives you the freedom to spend that extra money on whatever you need to in order to succeed.
Offering free parking spaces, especially in a busy CBD area can be an incredibly convenient incentive for tenants.
If you want to be able to offer convenient access for both your employees and customers, this is a very beneficial offer.
Fit Out Contribution
If you are leasing a building, you may need to pay for a fit out in order to make the space suitable for your business. This could be simple things like extra walls and finishings, or it can be more extensive things like adding plumbing and AC.
As a lease incentive, your landlord may contribute to the cost of your fit out. If there is a lot of expensive work to be done, this may not always be worth your time. In many cases you may be better off just renting a commercial space that is already up to high standards.
It will really depend on what your business needs.
Why Choose Englander Principal
Here at Englander Principal we can negotiate on your behalf to get you the best lease incentives available. We specialise in negotiating rent-free periods, half price rent or an equivalent.
When you try to negotiate on your own behalf, you may not be taken as seriously. That’s why you should talk to the expert negotiators at Englander Principal.
We take the time to understand the local property market conditions in your chosen area, so that we have the knowledge to broker the best deal for you.
We are not commercial real estate agents, we work for you and protect your best interests.
Our services are offered on a No Win, No Fee basis, so you really have no risk when you work with us.
If you want to learn more about how we can help you, contact us today.