How To Re-Negotiate Your New York Commercial Lease
How Do I Re-Negotiate My Commercial Rent?
As a result of the ongoing pandemic, many businesses are closed, operating virtually or operating below full potential. Landlords are well aware that many of their tenants are in jeopardy and, therefore, there has NEVER been a better time to try and re-renegotiate your commercial lease or co-working agreement. Further, re-negotiating your commercial lease is one of the single most effective ways to reduce your monthly nut. Since 1991, we have helped clients with all types of legal problems including lease negotiations and re-negotiations. We’re proud that we can effectively represent our clients from a legal perspective as well as from an entrepreneurial perspective. In fact, we pride ourselves on being highly effective in negotiating commercial transactions while remaining acutely sensitive to business realities. Matthew Weiss has lectured on negotiating and is a student of entrepreneurship. He’s the former president of the Entrepreneurs’ Organization, New York Chapter.
Below are some basic tips which all tenants should consider when attempting to negotiate one’s commercial lease:
- Make sure you have a lease and read its terms. There may be a force majeure clause or other provision that allows you to suspend payments or even cancel your lease. Force majeure literally means “superior force” and allows for contractual obligations to be suspended or terminated in the event of a chance occurrence or unavoidable accident. Your lease may also have a provision for civil authority that would be triggered when the government ordered non-essential businesses to close.
- Write a letter to your landlord asking for relief. The most powerful word in the English language is “ask”. If you don’t ask, you don’t get.
- If you have an otherwise good business, advising your landlord that you are willing to add to your lease term would be attractive. These words are magic to a landlord’s ears and give you a quid pro quo to obtain some type of other relief.
- Even if you cannot save on the rent payments, deferring those payments or negotiating other favorable terms (more space, repairs, additional parking, etc) has value. Always consider the full package to which your lease entitles you.
Obviously, every tenant’s situation is different. There are many variables to consider. So, while the above checklist is helpful, feel free to contact us for If you want a free consultation, email us at [email protected] or call 347-442-7239, and we’re happy to provide free advice or help you through this process.