AboutMike Fortunato Expertise Can answer questions on all aspects of commercial real estate management, including lease administration, eviction issues, financial reporting and budgeting, asset valuation/enhancement, marketing & leasing, and site maintenance and repairs. 20+ years of real estate management.
Experience 20+ years in commercial management. Current own and operate property management company in southern California.
Question I am in the middle of negotiating for a property, to trade in for gift Retail. I am just starting out and really don't know how to do this, i have been interested in this site for some time, I have just found out another Gift Retail, will be preparing an offer to day. The Landlord of the Shopping center has told me they are looking for 6 months rent up front, if this is paid they may well give 1 - 3 mths free rent, i am going to have to borrow this additional rent, to do this. The Retail unit is in a Secondary position in the Center, the Asking rent is £17,000 per annum, the Rates payable are £4,438. The Landlord has stated they may be willing to take a couple of thousand of the asking price for the rent. He asked asked me to put my offer in a e-mail to him. The length of lease he said he usually operates on is 2 year or years, i am interested in a 2 year lease, i mentioned i would want a months break in this for either party, he said they don't usually like to do this. I want security incase things don't work out, to get out of the property quick.. Have you any advice you can give me please, how do i negotiate this with out letting them know, i really am not sure how these matters are dealt with. I would be grateful for your help. I have been informed by the Land lord he has spoken to the other vendor, and will be having a meeting with the center Wednesday next week to make a decision which Retailer will be going in, please help. I am based in the UK Darlington , Thank you
Kind Regards
Amanda Leslie
Answer Unfortunately, I do not know how real estate negotiations are typically handled in your country. Here in the US, we used real estate brokers to represent landlords & tenants, and if that's the case out there as well, I strongly suggest being represented. In the US, the landlord normally pays both sides of the commission anyway, so there may not be any out of pocket expenses for you. But even if that isn't the case, you really should seek the advice from a real estate professional, not only for the basic lease terms, but also to review the lease document as well.
As for the ability to get out of the lease if it doesn't work out, I don't know of any landlord that would agree to such a provision. After all, what good is a 2-year lease if you can simply cancel the tenancy?
