Over time, lease rates go up, simply a fact of life in leasing Commercial space. If your business is doing well, sales increasing annually, it’s normally not a problem. Occasionally, however, the amount you are being charged, over time, will exceed the value you are receiving. Or not receiving, as the case may be. Possibly (probably) not even the Landlord’s doing: business conditions changed, more competition in the marketplace, changing fashions, people buying more (fill in the blank here) online. Whatever the case, the space you occupy might be worth less to you than you thought it would be 3 years ago, 5 years ago when you signed the lease. Call it bracket creep.
And let’s face it, over time those 3% annual increases, compounded annually, can really add up.
Well, at times, if you have substantial time left on the Lease, you can work with the Landlord and negotiate some relief, give them a heads up and – they probably don’t want to lose you as a Tenant -they’ll try to sublease some, or all, of your space. Meanwhile, you’re on the hook for 100% of the nut. Sorry, Mr. business owner, you can’t pay yourself this quarter/month/year, but you damn well better pay the RENT.
But I digress.
If you have a situation where you may be overpaying for the space (spaces) you occupy, call us, send us a copy of your lease docs. We will give you a candid evaluation of where you are vis a vis the current market and what your options might be re a “rightsizing” of your business, or better still, a rightsizing of your occupancy costs.