By Jeff Grandfield and Dale Willerton—The Lease Coach
Healthcare tenants should not be afraid to negotiate assertively on the rental rate. So why do healthcare tenants have such difficulty in this area? Frequently, the answer is a simple unawareness of market rental rates (or the “going rate” in an area).
Let us explain. Suppose the leasing agent or landlord wants you to pay $25 per square foot on new lease space (or even on a lease renewal). However, you know that every other tenant in the building is paying rent ranging between $18 to $20 per square foot. Armed with this information, you would have no difficulty justifying your negotiations would you?
Healthcare tenants often mistakenly believe that the agent or landlord wouldn’t dare ask for more rent than the space is worth. Consider that the landlord is paying the leasing agent commission not just to lease the space, but to lease it for the highest rent possible – and to the best tenant available. Commercial landlords justifiably want to maximize the return on their real estate investments, which is entirely acceptable.
Here are eight strategies for lowering the rental rate on commercial leases: [Read more…]