Have you had a chance to read “It’s a Tenants Market – Part 1”, in the May edition of National Newsagent? If you haven’t, grab your copy and flick to page 22. Written by ANF’s Leasing Specialist Michael Cuda, it goes into why landlords are currently more flexible that they have been in a long time.
Here’s an excerpt below:
Remembering it is a tenant’s market, you might even try to re-negotiate your existing lease to reduce the rent, even if it has a number years remaining. Of course, this is far more difficult to do than negotiating a lease at expiry. If you have an existing lease ‘on foot’, your landlord has absolutely no obligation whatsoever to reduce your rent or renegotiate other commercial terms. However, there are ways of doing this depending upon the individual circumstances.
We’re publishing part 2 of the article in the June edition of National Newsagent, out in just over three weeks. Here’s a sneak peek of what to expect!
When negotiating commercial lease terms in the current market it is very important that you put yourself in the landlord’s shoes and endeavour to understand their motivations. Generally speaking large corporate landlords, many of which are property trusts, focus on maximising cash returns—capital borrowing costs are much lower than the average business person, so they are able to borrow large sums of capital relatively cheaply and are subsequently much more likely to offer cash incentives toward your fit-out.
Want to take advantage of the Tenant’s Market in the meantime? Contact Michael Cuda today!
M. 0412 300 907