How to Save Money in the Current Climate Q2/2021
Do you know the market and the effective leasing rates and incentives available?
If you are nearing the end of your lease you need to consider the most cost-effective solution and the right outcome. You do not want to pay too much rent and miss out on leasing incentives. Experience counts when dealing with agents, analysing rental deals and negotiating lease terms.
Who is Representing You? Leasing agents represent the Landlord – Why be informed about the leasing market by the Landlord’s agent?
Seek independent professional property advice.
Sourcing New Premises – The best method is to test the market to ensure 'competitive tension’ is injected in the accommodation search process. The most appropriate approach is to issue an Accommodation Brief to the market. A NPV analysis will initially determine the most cost effective options available to initially screen out unsuitable properties. Then, a cost-benefit analysis will further highlight a shortlist of suitable properties to consider.
Did you know that real estate occupancy costs are typically the second largest expense item for a company, after salaries?
Negotiating Commercial Lease Terms – Negotiating lease terms is unlikely to be your core business.
There are many pitfalls in the negotiation of the terms and conditions in a Lease agreement. This may be in the form of rent reviews, fitout process, make good, sub-leasing and lease options available. Intercommercial Property Group has extensive experience in these matters and can negotiate effectively on your behalf.
What are the Savings? – In most cases, tenants will pay more than they should (3% - 12% more), as they are not be able to negotiate the best terms in the market. The solution is to seek independent advice from an expert.