How To Negotiate A Property Lease With Office Fitouts In Sydney?

A few years back, establishing leverage with your landlord was so easy as office vacancies were rapidly increasing and landlords needed to deal with people of today to improve its market. As a result, the landlords were highly assertive by providing huge incentive packages that provided money for office fitouts in Sydney and substantial rent-free periods. In short, obtaining a lease with a landlord at that time wasn’t really difficult.

However, over time, the market has started to change and the office vacancies now tend to be decreasing. Negotiations and how tenants approach their landlords have changed as well. Here are the two reasons for the change:

  • Lease assumptions have declined dramatically due to smaller lease incentives. Tenants who have renegotiated the lease for several years now have lost the leverage that existed many years ago when they threatened the landlord that they will leave the building if he didn’t restructure his lease.
  • The profits that landlords earn from rental rates are now increasing. Many landlords wait while anticipating a more favourable market for ownership than to restructure the lease they have today.

Although existing negotiations have changed, the tenants’ market will still accept the current market rates. How the strategies can be negotiated will determine how the market has changed. Here’s how you should negotiate for an existing lease, especially that you also need to invest in office fitouts in Sydney for your office.

  • Know your Landlord: As a tenant, you should know the goals and objectives of your landlord.
  • Be Flexible: You need to be really flexible when renegotiating a deal with your landlords. They dislike restructuring and reshaping the deal at hand.
  • Seek Creative Solutions: if you want a low cost alternative to your existing premises, seek work spaces that have already office fitouts in Sydney so you can maximise the space.
  • Look to the Future: Even if the lease is not up within the 12th month, you can still cut the deal if you find a better office space to lease.

A tenant must be aware that strategies and tactics will change in the market. They must deal with a landlord now and understand how to motivate the owner with a negotiating table.

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