MONEY-SAVING MOMENT: Attention, business owners! Now is the time to lock in a low rate on space for your business. I want you to get the job done and start saving money today with these tips below.
We have a massive surplus of office, commercial, retail and business/industrial space because of the recession. The vacancy level is very high in a lot of major markets and some sub-markets in metro areas. If you have an existing business, your ability to negotiate a new deal for rent is phenomenal right now. And if you want to do a startup, you can practically write your own ticket.
I read recently that retailers who were building bigger and bigger box stores are now going the other way because they find they’re inefficient with all that space. So they have a lot of space on their hands that they’ve got to do something with. Sears is one company that has way too much square footage. They’ve hit on the idea of taking existing stores and leasing space within them to small businesses in increments of as little as 3,000 square feet in some instances.
Here are some tips from The Wall Street Journal that can help you negotiate the lowest rents:
- Start negotiating when you have less than 24 months left on your existing lease.
- The opportunities are the strongest if you are willing to disrupt your life and relocate your company to a new space. You probably won’t get a deal by just trying to renegotiate with your existing landlord where you are right now.
- Vacancies won’t always be this high. So this would be a time to sign a long-term lease to lock in at today’s much cheaper rents. It could be very much to your advantage.