Guest post by Nick Banks, Front Street Realty
Many business owners are so busy running their business that they sometimes fail to act early enough to renew their lease or at least begin discussions with their landlord. Here are some tips to help you navigate through the process and take a proactive approach to the lease renewal process which will benefit the bottom line of your business.

• Read your lease. There is no such thing as a standard commercial lease – they are all different and you need to understand what yours says.  Chances are you haven’t looked at it since you signed it.

• Know what you are required to do. There are always notice provisions in the lease that require you to give the landlord a certain amount of notice if you intend to renew your lease.  Failing to meet these requirements can severely diminish your ability to negotiate the most favorable terms.

• Understand your renewal options.  Check to see if your lease has an automatic renewal option at predetermined rents.  Some leases provide for this option period but it is up to you as the tenant to exercise the option. Remember that since it’s your option to renew, everything is negotiable.

• Start talking now. The sooner you begin discussions with your landlord the better.  Landlords want as much lease term from their tenants as possible so if your lease expires in less than 18 months you need to start discussions.  Often a landlord will be more negotiable on rent in exchange for additional lease term.

• Understand the market. You need to know what competitive spaces are available and what the market rent is for space like yours.  This knowledge will empower you to have meaningful negotiations with your landlord.

• Retain a professional. A healthy relationship with your landlord is important.  An experienced commercial real estate broker will not only help you gain valuable market knowledge but they can also act as a buffer between you and the landlord.  Your broker can represent your interests to negotiate more favorable terms and save you time and stress while you do what you do best – run your business.

Nick is the Managing Director of Front Street Commercial Real Estate Group and is a 16 year veteran in the commercial real estate business.  He has developed, leased, managed, and financed over $750 million in real estate transactions throughout his career. For more information, visit www.FrontStreet.net or call 352.505.3884.