These are challenging economic times. We have seen them before and we will see them again. From our personal perspectives, they seem like they will never end.
Tenants -- large and small -- are under tremendous pressure. You signed a lease when the economy was booming and expectations were high for your new business or new location. You found a facility that fit your needs perfectly and negotiated a lease with a much bigger business enterprise than your own: the landlord. You were proud of yourself for establishing a fair market rent with periodic increases that were about the same as you had heard were typical for the submarket.
Now you are facing stiff headwinds. Your revenue growth did not keep pace with the business plan you shared with the landlord before lease negotiations commenced. In fact, you just lost one of your stable customers to bankruptcy and others are calling you with reduced orders. The rent is weighing you down and you fear the increase coming just two months down the road could sink you.
Does this scenario sound familiar?
Well, it's time to set your fears aside and realize that the landlord is feeling the same pressure to be creative and protect his real estate business interests. A failed tenant or broken lease is a vacancy with no rental income. The landlord wants to avoid this. With a modicum of understanding of the landlord's business, you can quickly convince him you are a tenant worth sticking with.
For the past 27 years I have managed property for landlords of all stripes and been a landlord myself. I will be offering a webinar in the near future providing no-nonsense tips on how to "classify" your landlord and sensible tactics on how to do business with them. If you would like to receive details on this opportunity to gain useful insights and ask those questions that have been nagging you, please add your comment to this blog or contact me directly at aaron.weiner@weinerproperty.com.
More to come!
Wednesday, May 26, 2010
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