Commercial Real Estate Lease Renewal
Lease Renewal & Renegotiation Services
Are you considering a commercial real estate, office space, or warehouse property lease renewal or lease renegotiation in Minneapolis/St Paul, MN? If so, this time presents an opportunity for companies to assess their current position as a renter, revisit the Minnesota commercial property market and use that information to work out a better lease agreement. If you position yourself as a well-informed tenant that understands your leasing options and how they relate to the evolving needs of your business, you can ultimately secure a better deal and earn back a portion of your occupancy costs. Take advantage of the market knowledge, comparables and LEVERAGE that we provide during your lease renewal.
A Landlord’s broker legal obligation is to represent their client’s best interest, the Landlord. You expose yourself to a huge conflict of interest when you use one or several landlord brokers to “negotiate” on your behalf on a lease renewal. Unlike a Landlord’s broker, we are 100% accountable and committed to you. We eliminate conflict by how we work and how we structure our fees.
Leverage is the key to success when negotiating a commercial property, warehouse space or office space lease renewal with your landlord in Minneapolis/St Paul, MN. In order to get the best deal possible, the landlord must know you are out looking at other options in the market with a Minnesota commercial real estate broker. We understand that business owners/managers are more concerned about their business and just want the most cost effective deal possible. As a Minneapolis/St Paul commercial real estate agent, our extensive experience and market knowledge will ensure that you get a market deal even on a renewal. Using our process, we will help you determine the appropriate lease rate, free rent period, tenant improvement allowance, and square footage to maximize your savings. Take advantage of the market knowledge, comparables, and LEVERAGE that CRE Partners provides during your lease renewal.
In the Minneapolis/St Paul market, any lease can be modified at any time, if both parties agree to the changes. If you have time left on your lease, you have options. We have experience in changing lease terms to reduce your square footage, reduce rent, or provide other landlord concessions. In worse case scenarios, we have negotiated lease terminations and relocations.
Lease Renewal Fees
Engage a Minnesota commercial real estate broker (Us!) that adds value, not cost to your lease renewal. We will take the time to understand your specific situation and business objectives. Our fees are typically paid by the landlord in all lease renewals and lease renegotiations. In certain instances, we will require the tenant to pay a percentage of saving or enter into a consulting contract. Fees vary depending on deal size and the specific landlord.
Commercial Property Lease Renewal Tips
A commercial real estate lease is a significant investment. In terms of negotiations, it is beneficial to be proactive rather than reactive. Review your lease on an ongoing basis, and approach your landlord 6 – 12 months before the expiration date. Because of the dynamic nature of the Minneapolis/St Paul commercial real estate market, changing economic conditions may present the opportunity to renegotiate your lease early. Therefore, you should continually monitor the market in order to take advantage of these openings or opportunities for savings. Having more time for negotiation is always an advantage.
Assess What Your Space Can/ Should Do for Your Company
Look at your current space and ask yourself, “What does our company need in order to improve efficiencies and create the ideal work environment?” Some items to consider include amenities for employees, optimal office configuration and updated technology infrastructure. Once you have identified these needs, include them as discussion points in the lease agreement negotiation. In some cases, your landlord may be willing to incur some of the update costs, if it means keeping you on as a tenant.
Hire Us & Form a Plan
As you approach a commercial lease renewal, you might begin to feel like a captive tenant. Take control of the situation by hiring a Minneapolis/St Paul commercial real estate agent to form a lease and aid in competitive negotiations. While you may be satisfied with your current space, your company should view this financial investment from all angles, and select an action plan that makes the most sense from both business and economic standpoints. Do not lead into the lease renewal process giving your landlord the impression that you fully intend to stay in your current space. If they believe renewal of your lease is guaranteed, this may be used against you in the negotiation process. For example, the building owner could seek less favorable terms, decline your requests or be less inclined to negotiate than if he or she thought you may consider other locations. Using the aforementioned tips to formulate a plan that puts your company in a position to benefit from an updated lease agreement. Taking a strategic approach will show the building owner that you have done your research and are in a position to negotiate.
Even if you intend to stay in your current space, we take the time to educate you on other buildings and owners in the Minneapolis/St Paul market. You may uncover an alternative solution that is competitive and worth exploring. (For example, market conditions and availabilities may have changed since you signed your last lease. Or, other owners may offer different contract terms, less debt, lower taxes or more desirable amenities.) You may choose to move locations, or bring these differentiating factors to the table during the negotiation process, creating incentives for your landlord to make you a better offer.
Understand Your Landlord’s Renewal Profits and Negotiate
As you can imagine, landlords enjoy financial benefits when they renew agreements with existing tenants. When a tenant leaves, the landlord stands to suffer a loss in rent, as well as incur additional expenses needed to make updates or renovations, and market the vacant space. This presents the opportunity for successful negotiation. But in order to do so, it is critical to understand the landlord’s current situation, including his or her overall portfolio, and the impact and value your lease has within the market.
Cities We Serve
Commercial real estate sales & leasing services in the greater Minneapolis/St Paul, MN metro including: Minneapolis, St Paul, Chaska, Chanhassen, Eden Prairie, Edina, Wayzata, Minnetonka, Hopkins, St Louis Park, Golden Valley, Plymouth, Rogers, Bloomington, Shakopee, Eagan, Brooklyn Center, Brooklyn Park, Maple Grove, Lakeville, Burnsville, Fridley, Blaine, Coon Rapids, Arden Hills, New Brighton, Oakdale, and Woodbury
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