Small Businesses Landing Shorter Lease Deals

by Isaac Benmergui, Esq on March 8, 2012

Commercial landlords are trying a new tactic with South Florida’s small business owners – offering shorter leases to get empty space filled.

Retail Tenants Positioned to Bargain Favorable Lease Terms

The average retail space leases for five years, but when the Great Recession caused many businesses to fail and literally close-up shop, landlords were left with broken leases and no new tenants on the horizon. Now tenants want space, but realize they’re in a strong bargaining position as landlords just want monthly rent payments again. In an effort to attract renters, landlords have turned to shorter lease terms, and it’s working to draw tenants in.

New Commercial Leases From 6 Months to 3 Years

Tenant can now find leases with terms from six months to three years with lower monthly rent to boot. Tenants sign the lease knowing they’re getting a good deal with the peace of mind in knowing they’re not locked into a long-term expensive lease. Landlords get their vacant space filled, and at the same time know they won’t be locked into a low return lease. At the end of the contract, should the tenant decide to stay, the landlord can raise the rent. Hopefully by the end of the lease, the economy will have rebounded enough that a lease with more favorable terms for the landlord can be negotiated.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your negotiating the most favorable terms for your commercial lease; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

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