3 Surefire Ways to Reduce Your Office Rent
Office space is usually an organization’s biggest business expense, ranking second only to payroll costs. Finding ways to reduce your rent can be particularly pivotal in today’s tough economic times – and can payoff in an immediate increase in your profit margins. Here’s three surefire ways to reduce your rent, save money month after month and boost your bottom line.
1. Ask for free rent to begin your new lease.
Timing is everything. Begin negotiating your lease renewal nine to 18 months prior to the expiration of your term, as this gives you the most leverage with your current landlord.
Remember that a new tenant moving into your building would likely receive free rent as an incentive. As an existing tenant, you should ask for this same inducement for selecting to stay and renew your lease.
2. Ask for a rent reduction.
If you elect to stay in your current space, your landlord saves money by not having to spend improvement dollars or endure downtime to attract or satisfy a new tenant. Ask to share in this savings. Or, if your offices need updating, ask your landlord to paint or re-carpet, especially since this is another typical benefit offered to new tenants.
3. Ask to reset your Base Year.
Most leases incorporate a clause that requires you to pay for any increases incurred to operate the building over and above these costs during the first or Base Year of your lease. These costs can add as much as 30 percent to your rental expenses. So, when renewing your lease, ask that your Base Year be adjusted to reflect the new initial year for your new term.
If you operate in a market with high vacancy rates, you’ll find that landlords are willing to compete for your business by offering incentives. As a result, as established tenant representatives, we often receive proposals from landlords, which we can leverage to help you enjoy the most favorable terms and rent possible.
Before you negotiate your next lease, be sure to contact Matt Edgar at 720.435.2191 for a FREE LEASE ANALYSIS, with ways to SAVE THOUSANDS on your office lease.