TEnant representation
As your lease expiration is approaching, you are faced with many key decisions. The main one being: should you relocate to a separate facility or begin the renewal process?
Why not begin both at the same time?
We take a two-sided approach to lease negotiations, initiating the renewal process while simultaneously exploring relocation options. This strategy allows us to maintain both an external and internal strategy. Externally, we express a genuine interest in renewing—emphasizing that staying put avoids the hassle and expense of moving—while noting that attractive alternatives exist that may better suit operational needs.
This position helps build leverage, ultimately pushing the renewal rate down.
Internally, whether we’re committed to staying or seriously considering a move, we’re setting up favorable terms for either scenario, ensuring a lower renewal rate for both Plan A and Plan B.
Advantages to Renegotiating Your Lease
Below market lease rate
Improvement allowance
Less disruption with more time focused on your business
Save on moving costs
Employee retention
Use of a third party creates an arm’s length relationship between tenant and landlord, protecting your landlord/tenant relationship
Strategies Kidder Mathews Implements
Understanding the landlord’s cost to re-tenant
Having your best alternative for relocating if needed
What would your current location lease for in today’s market
Re-examine your space and maximize its utility
What to Consider
Lease term
Annual rent adjustments
Future renewal options
Restoration provisions
Pass through expenses
Landlord vs tenant obligations
The Cost for a Landlord to Find a New Tenant
In lease negotiations, one of the most effective strategies is demonstrating the true cost a landlord incurs when re-tenanting a space. By outlining these expenses, we can often secure more favorable renewal terms for our clients. The primary costs for landlords to consider include:
Vacancy
Each day the space remains vacant represents a significant financial loss. Every day the lights remain off inside an industrial building is another day an owner reflects on why they didn’t do everything possible to keep you as a tenant.
Marketing Costs
Expenses related to advertising the space, including online listings, signage, and possibly engaging real estate brokers.
Tenant Improvements
Expenses for necessary updates like new carpet, paint, or office build-outs.
Legal Fees
Costs associated with drafting and reviewing lease agreements, as well as any necessary legal consultations.
Rent Concessions
Typical incentives such as rent-free periods or reduced rates offered to attract new tenants.
Operational Costs
Ongoing expenses during the vacancy period, such as utilities, property taxes, and maintenance, while the space is being marketed and retenanting.
By effectively illustrating these costs, we create leverage that often results in a more attractive renewal rate for our clients, turning potential expenses into valuable negotiation tools.
Questions and concerns regarding tenant representation services
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Will you really save me money?
We let our case studies do the talking. With our support, you can feel confident you’re securing the best deal possible.
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How much does your service cost?
Our fees are fully covered by the landlord, so there's no cost to you.
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Could hiring you create tension with my landlord?
Quite the contrary. Our involvement fosters a professional and cordial relationship with your landlord. Landlords appreciate tenants who approach renewals with an experienced third-party advocate.
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Can’t I handle this on my own?
While self-negotiating is certainly an option, we bring market-wide insights that provide a distinct advantage. We track every property across the entire market and have access to detailed comparable data on recently leased properties. This information, available only to industry professionals like us, allows us to create leverage and ensure you secure the most favorable terms possible.
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I have already renewed at this location and/or have received a renewal proposal from my landlord.
We’ll inform your landlord that you’ve chosen to use our service and will be conducting a comprehensive market review. Once we’ve evaluated the available alternatives, we’ll present a renewal proposal along with comparable options from competing spaces.
While a lease renewal may seem simple at first glance, effective negotiation requires careful strategy to maximize savings and add value. Landlords naturally act in their best interests, and without a dedicated tenant representative on your side, there’s a risk of unfavorable terms that could impact you for the entire lease duration.
By partnering with our team at Kidder Mathews, you can trust that we’ll go above and beyond to secure the best possible deal—even if it means lower earnings for us. We’re committed to serving our clients’ best interests and advocating on their behalf at every step. We hope this Renewal Guide has provided useful insights, and we’d be happy to share more about our strategies. Feel free to reach out anytime for questions or to schedule a consultation.
