Lease Renewal Negotiations

Surprisingly, in many cases, the Landlord’s renewal rates and terms offered to its existing Tenants may be less attractive than the rates and terms offered to new Tenants! This is because Landlords know that, statistically, the majority of Tenants prefer not to move, and that many Tenants assume their Landlord will give them a “fair deal.”

When you renew your lease, the Landlord typically spends much less on TIs when compared to a new Tenant. The TI allowances provided to new Tenants can be significant, because new Tenants often require major reconfigurations to a space, as well as updates to carpet, paint, lighting and other finishes. However, if you don’t need this level of build-out, the renewal rate offered to you by your current Landlord should reflect these lower costs. Additionally, your lease renewal means the Landlord will not suffer any uncertainty or loss of rents. The key to maximizing your leverage in this situation is to create a competitive environment, forcing your Landlord to make a renewal offer that recognizes the benefits your tenancy. Lower costs and lower risk (of vacancy) should translate into lower renewal rates for you!

Landlords often discourage existing Tenants from seeking competent representation when it’s time to discuss a Lease Renewal. Guidance brokers have extensive experience successfully negotiating Denver lease renewals and expansions. We will develop a competitive environment making sure that your Landlord will compete for your business. And we accomplish this in a professional manner that does not damage your relationship with your Landlord. Additionally, in almost every case, your Landlord will pay our fees, just as they will pay the fees of a broker representing a new Tenant.