Renegotiation of a commercial lease on the market today - fighting the owner and tenant

The current recession means that tenants are struggling to survive. To this end, many tenants, their leases as a means to further reduce the costs to be renegotiated. However, landlords are under increasing pressure to protect their rents and employment to maintain the wear properties due to the threat of mortgage payments, property taxes, insurance and other costs. Each party should take steps to protect themselves now and in the future. The owner and the tenant must be preparedInformation on current market conditions and business conditions of the tenant before entering into renegotiations. Both sides should be interested in the financial condition of tenants, the economy, reductions and cost savings that have already been implemented and how much more must be cut in order to overcome the present economic situation. A review of these factors will lead to effective negotiations between the parties.

The owners offer a variety of devices to ease the economic crisisPressure on the tenant:

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A. Rent Reduction for up to six months, until the end of the lease including a lump sum or amortized over the previous year of the lease.
b. A reduction in the monthly fee.
c. The approval of a temporary change in the base year for operating expenses / utilities, landlord or a credit to the users for the current year.
d. A temporary reduction of the common area fees.
e. signs additional parking spaces and additional free support to develop new or moreCustomer / client.
f. Carrying out repairs or improvements to the premises, so we invite you to more customers / clients, including landscape.
g. construction of additional tenant improvements to improve the current structure.
h. Leave a tenant of a part or the entire unit sublet with approval.

Renegotiation of a commercial lease on the market today - fighting the owner and tenant

As a result the total rental units should continue to invest in "green" on current and future tenants. Going green is a trend to protectthe environment, but also an efficient use of building tools. An efficient buildings can make a difference to the residents in determining what they can afford to pay the rent.

In exchange for reduced rent or a permanent reduction of rent, the owners would be useful to ask the tenant for a couple of things:

a. Prolonged / extended-term CPI rent index or step-up bandwidth each year for rent
b. Waiver of rights of first refusal to expand the options or purchase, andexclusive use provisions
c. Clause transfer (especially if long-term reduction of rent).
d. unilateral renegotiation of the rights to their owners in five years.
e. waiver of co-location requirements.
guarantees f. by the personal / tenant or tenants and the parent company.
g. forfeiture certificate waiving the default host.
H. Forfeiture of early termination.

Alternatively, you can fight for tenants, this is the time to renegotiate with the landlord to try. FirstApproach to this process, tenants must ensure that their financial house is in order - requires cuts and staff reductions have been made, and the business is "lean and mean". Tenants must notify the landlord to prove. In addition to the devices listed above for the owners, tenants should try to look for:

a. short-term, low-rent apartment.
b. Contraction option to save space if necessary.
c. Expanding the terms of use.
d. increase flexibility in the assignment and sublettingClauses.
E. Withdrawal a minimum sentence.

Many owners and tenants do not need property management staff or resources in this environment for a broader strategy of renegotiating the lease. The owners may be reluctant to spend precious resources on a contract previously negotiated. Tenants may be reluctant to have contact with their owners to third parties. But with the right specialists, provides a significant advantage for both parties. Professionals canProtection of the revenue stream host and prepare them for future growth for each phase of the economy. For tenants, professionals can work as an extension of the resources of the tenant, while isolation from society a push-back host.

Both owners and renters should continue to experienced professionals who know their craft, its position in the market to understand its real estate strategy, and have the ability to not only the economic provisions of the lease must be renegotiated, buttake appropriate documentation of the changes.

Renegotiation of a commercial lease on the market today - fighting the owner and tenant