Landlords are just like other service providers in the sense that they must entice potential consumers to choose their products over neighboring ones that may be equally attractive. When there is little difference between your client’s building and others in the area, advise him to determine which concessions he can and cannot afford to offer to secure an occupant.
Free Rent
Many landlords will offer free rent for a given period of time, which can entice temporarily cash-strapped tenants, depending upon the length of the lease. This offer usually extends for one month to one year, after which time the rental rate agreed upon in the lease will be enforced.
Higher Tenant Improvement Allowance
Depending on the location, landlords may offer an extra $20 to $50 per square foot for tenant improvements, which may range from replacing flooring to adding shelving or removing interior walls.
Shorter Lease Period
Though this could end up hurting a tenant if the landlord chooses to evict, a shorter lease term almost always benefits the tenant. This is because the needs of an individual or business are far more unpredictable than those of a landlord. Whereas a landlord may obtain a bit more rent with a new tenant, an individual entity may require more or less space, or have substantially more or less money to spend on rent.
Move-in Allowance
If the landlord is unwilling to reduce rent, he may be willing to offer a move-in allowance, which can take the bite out of the relocation process. This allowance may cover the cost and labor of packing, transporting and situating the tenant’s belongings.
Consent to Sublease
This can be a valuable lease term to negotiate, and one that doesn’t necessarily cost the landlord any money out of pocket. If a landlord cannot offer monetary concessions, potential tenants may be able to secure more favorable lease terms. Consent to sublease could be an extremely attractive option should the tenant decide that the space will no longer work.
Reduced or Waived Fees
Parking permits, Internet access, gym memberships, and washers and dryers are all popular, costly amenities. If a landlord can waive or compensate any fees associated with these features it could be enough to sway a tenant.