What’s with agent pressures on tenants to commit to a commercial lease?
You’ve heard it before: an agent pressures a tenant sign a commercial agreement to avoid missing a leasing opportunity.
This is fast becoming an everyday occurrence. But is there really a serious party interested or are they just a tyre-kicker?
Food for thought
Based on our experience at Tenant CS, the ‘so-called’ interested party is most likely just shopping the market, so don’t jump too quickly to respond.
Let the agent know that you’re still very interested but will need more time to think your decision through. And, in many cases, they will call you back a few days later to let you know that the other offer fell through.
If this happens, start negotiating hard. It’s likely that the agency never had any other parties interested, which means you have the upper hand!
‘If an agent starts putting the pressure on you, the best thing you can do is nothing,’ says Key Account Manager (APAC), Francois Rollin.
‘Let them pursue the interested party if they are so desperate to take the space. There is nothing worse than being pressured into a commercial lease without first seeking the right advice,’ says Francois.
Before you sign your new lease
As soon as they know you’re slightly interested in a property, most real estate agents will employ a tactic that taps into your fear of missing out.
So, stay aware and don’t sign on the dotted line until you’re confident you’ve:
- Sought the right legal or financial advice
- Negotiated the best terms possible
- Understood the entire lease
- Been made aware of who will maintain and repair the premises (usually shared between the landlord and tenants)
- Understood how you’re able to alter the property to suit your business and the conditions for ‘making good‘ at the end of your lease
Get the right advice
At Tenant CS, we’re across the latest trends and developments in the commercial real estate market. What’s more, unlike brokers, we work exclusively for the tenant, which means we’re able to filter information, provide conflict-free comparisons and champion your best interests in strategic negations with landlords and agents.
When it comes to commercial leasing negotiations, we always develop a tailored strategy to suit your needs. So, if you’re looking at negotiating a commercial lease, get in touch with one of our team members today!