Where there’s a Lease, there is, inevitably, a Lease Renewal. And lease renewal time can mean different things for you depending on how you approach it. It’s possible to negotiate improved amenities or inducements — basically your landlord’s money going toward updates to your property. But, if you handle it poorly, lease renewal can unfortunately mean that you stay where you are with what you have, but pay more for it.

If you can manage to avoid these four mistakes, the former is more likely than the latter! Be sure you don’t …

1. Get started late — As a tenant, time is power. If you’re in a rush to get your lease renewed, your landlord holds all the cards. Ideally, you should begin the renewal process 9-12 months before your lease expires. And make sure not to rush the negotiating process. Take your time and negotiate for everything you want.
2. Fail to research — First, look into your landlord’s current holdings. That way, you’ll understand just how valuable your tenancy is to them, and you can strengthen your negotiation position. Also, get in touch with your neighbors. Other tenants leaving will mean your tenancy is more valuable, and other tenants’ renewal prices may affect yours. Most importantly, find alternative leasing options even if you plan on staying. The minute your landlord believes you intend to stay put, you’ve lost the advantage. Having backup options is useful in case you do end up having to move, but they will also push your landlord to work harder to keep you.
3. Trust your landlord’s broker — Ultimately, the landlord’s broker is only looking out for one person’s interests … and that person isn’t you. Your landlord’s broker’s goal is to make as much money off of you as possible. Instead, work with a broker who has your best interests in mind and thoroughly understands the market: a tenant broker.
4. Aim low — The key to improving your lease instead of fighting to keep it at the status quo is this: Don’t just negotiate not to get a worse lease, negotiate to get a better one.

A lease renewal doesn’t have to mean increased rent without increased value. And if you hire a tenant broker, it doesn’t even need to mean stress. Tenant brokers have the expertise and the experience to negotiate the best terms — and best of all, they’re on your side.

For more information about making the most of your commercial space lease renewal in NYC, contact Manhattan Commercial Realty by phone at 212-624-9224, by email, or online.

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