Negotiate the Cost of Your Warehouse Lease

Warehouse and manufacturing organizations are taking advantage of the glut in the market in commercial property. Even with the over population of building in many cities, developers continue to build industrially geared structures. There is no doubt that it is a buyer’s market, but consider, that it is also a leaser’s market as well.

If you are currently paying the same price per square foot as you did three years ago, why? Now is the time possibly to cut costs by negotiating the price per foot and trying to reduce your monthly lease expenditure. Let’s face it, there are a lot of options open to you right now and if feasible, it may actually be cheaper in the long run to invest in moving equipment to another location if the current property owner is not willing to negotiate.

Strategies include researching the current market within your immediate area as well as others that might be of interest. Make certain that you are prepared with current statistics and information about cost per square footage as well as lease requirements such as minimum number of years, sub-lease options should you need to leave the location, and what repairs and maintenance the property manager covers.

Once you are armed with all the information pertinent to negotiation you lease, you can then contact your current property manager and negotiate a potential reduction in your lease terms. Not all property owners are willing to negotiate, but if you have good negotiation skills, then you might find yourself in an advantageous position and substantially lower your monthly expenses.