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Attracting Advantageous Tenants with Unusual Concessions
If you find yourself in the position of having to actively draw in tenants, you can sweeten the deal for those that might be on the fence.
Consider 3 Concessions That Give You an Edge Over Other Commercial Property Owners:
Concession #1: Offer Rent Abatement. Rent abatement offers are one of the best negotiating tools and help get tenants locked into leases.
Concession #2: Waive Security Deposit. For this to be effective, you need to negotiate this right—the key point is that you retain the right to collect the security deposit if the tenant defaults.
Concession #3: Provide Lease Termination Option. You can offer this option and still provide yourself with adequate protection. Your lease clause needs to stipulate that, to exercise the option, the tenant:
• must not be in default of the lease;
• must provide you with adequate notice; and
• must pay a termination fee.
For more on Concessions…and 55 other important topics for commercial property owners and managers—and those that advise them—visit www.VendomeRealEstateMedia.com and click on Best Commercial Lease Clauses, 10th Edition.