In order to best represent a tenant in a commercial lease negotiation, it is important to understand what really matters to the landlord. Join Matt Mattingly and Johanna Jumper from Bradley and guest Lesa Nickelson French from Savills as they discuss the components of the business deal that underlie all commercial leases. You will learn why landlords would rather give free rent than a rental rate reduction of lesser value, and how effective net rent is calculated and why it matters. Gain an understanding of what matters most to lenders, owners and future buyers.
- Don’t assume that terms like “triple net”, “gross” and “full service” mean that same thing to all parties.
- Tenants should know the key economic components of a lease before entering into lease discussions. Identifying key Tenant priorities, and understanding how they can affect Landlord’s economics, can make a big difference in achieving sought-after concessions.
- Understanding how owners evaluate their buildings and analyze their rental income can help tenants be more strategic in their negotiations with landlords.