It may be a difficult time to be in business, but it's a good time to find a new space for a business. As with housing, there is a glut of commercial real estate on the market. "Two years ago, it was a whole different market. It was more of a landlord's market," says Andy Fried, a consultant at the Kennesaw State University Small Business Development Center and a commercial landlord himself. "Today, it's all a tenant's market. There are no rules. Asking for 12 months' free rent is not absurd."
That's right: free rent. A commercial lease is a long and complex document, and negotiating one can be daunting. But a prospective tenant has a great deal of leverage at the moment. It has always been true in principle that everything in a lease is negotiable. Now, it's true in practice, too.
Even if you are a strong negotiator, however, don't try to go it alone. A good broker is essential, because he or she will know what landlords in your area have been offering to lure tenants. And, because brokers have conflicting loyalties (see "Of Brokers, Beware"), you will also need a lawyer who knows commercial real estate. "Brokers tend to like the lease -- they don't tend to bring things up unless you do," says Ned Harper, director of the Daytona State College SBDC. A real estate attorney, on the other hand, "has seen what clauses are going into contracts. He's the one who's written them."
