64% of Beverly Hills, California employees recommend working in the city to a friend. The 90210 is a hotspot for businesses and employees looking to work at the office or on a hybrid schedule.
This means commercial property owners have the chance to make a good amount of passive income. Through commercial lease analysis, you can uncover opportunities to make more.
Keep reading to learn about commercial lease analysis.
Cost Management
Commercial lease analysis uncovers hidden opportunities for cost management. Landlords and businesses can benefit from this opportunity. Both parties will get a clear understanding of the costs associated with the rental, including:
- Rent
- Maintenance
- Operating expenses
The transparency makes it easy for businesses to budget. This means that landlords are more likely to get rent payments and other associated fees on time.
Through lease analysis, a property owner can allocate their profits to improving the property. Enhancing the building will help landlords gain a higher return on investment.
Additionally, they can save on costs by analyzing a lease when there are market changes. If the commercial market slows down, it will be difficult to fill a vacancy.
In this situation, negotiation is key. Consider offering waived application fees or a month of free rent to attract businesses to the property.
Lease Negotiation
Before a lease agreement is signed, a lease analysis should be completed. This allows businesses to find opportunities to negotiate lease terms. This can also be done when it's time for a lease renewal.
Allowing businesses to negotiate can improve tenant relations. They may want to change clauses or add provisions that benefit them. Landlords should listen to their arguments because they may benefit you too.
Negotiation can help both parties agree on a long-term arrangement. Owners of commercial properties won't have to worry about marketing the property to find a new tenant so soon.
Lease Renewal
Commercial property management services can help landlords track lease renewals. When a business is up for renewal, both parties can negotiate terms beforehand.
It's best to conduct a commercial lease analysis a few months before the renewal. This way, you can either agree on the new lease terms or find a new tenant.
Starting early gives you enough time to find a new business and limits the vacancy time.
If there is something that an owner wishes they added in the first lease, they can add it to the lease renewal. Keep in mind that changes might not be ideal for businesses. You should prepare to find a new tenant in the worst-case scenario.
Let Us Handle Your Commercial Lease Analysis
Conducting a commercial lease analysis is a great way to save money, negotiate clauses, and prepare for lease renewals. Landlords should seek help from Beverly Hills property managers for the best results.
PMI Beverly Hills is a full-service property management company with state-of-the-art leasing tools and knowledgeable property managers. We've been in the business for 20 years and can take on your leasing needs.
Start working with us today by contacting us at 424-478-9757.
