For Boston Metro businesses currently grappling with increased costs and/or a reduction of capital, recovering from the pandemic’s effects is a work in progress. Renegotiating your lease isn’t a silver bullet for all financial shortfalls and shouldn’t be done lightly. But if a reduction in rent, or the avoidance of increased rent can make a material difference, then it’s certainly worth considering.
Before you begin, check the local commercial real estate market conditions for similar buildings and business setups. If commercial lease costs in your area have been trending lower, the market may be on your side. You may also obtain Boston Metro tenant representation, which gives you the advantages of professional market analysis and expert lease negotiation.
When seeking a reduction in your lease costs, know the purpose behind your request and be ready to communicate this to your landlord. What will the reduced rent allow you to accomplish? Will it enable your business invest in new equipment, which will allow you to serve more customers? Will you be able to hire more staff? Your landlord wants to see light at the end of the tunnel.
If a temporary reduction in rent is not the right solution, it may be possible to ask for a temporary rent abatement. In this situation, you may be able to get a rent forbearance of one month to six months. This rent must be paid in the future, sometimes with interest.
If your rent is reasonable and your current location is a good fit, you may wish to seek an extension of your current lease.
If renegotiation of your lease isn’t feasible, or proves unsuccessful, then it’s time to consider your options. Having experienced tenant representation on your side will help you navigate the best solutions for your Boston Metro business.
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property.
Contact us today for commercial real estate guidance!