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How to Handle Tough Tenant Negotiations in Commercial Real Estate Brokerage | Commercial Real Estate Training Online
Some tenants in commercial or retail real estate can be tough to negotiate with. That is largely because they fail to accept market circumstances and negotiation protocols; for their own reasons those tenants can be positioning for 'their deal' and hoping to achieve it. So how do you handle a 'tough tenant'? It is up to the agent to ensure that the landlords position and targets are maintained through to the very end of lease negotiation (be it successful or not). The professionalism of the agent must prevail to the very end. Here are some of the typically standard 'tenant standoffs' in a commercial or retail lease negotiation: They want to get early occupancy before the lease is signed The asking rents are they believe too high They don't want to pay outgoings The bond or guarantee is too much They don't want to pay the lease deposit The tenant wants to lower the rent review amounts or frequency They delay signing the lease They want an unrealistic lease incentive to negotiate