Landlords Don’t Give Concessions on Renewals
Dispelling Commercial Real Estate Myths
In working with thousands of healthcare professionals on lease renewals, one of the most common statements we hear is: “My landlord told me they don’t give lease renewal concessions” or “I’ve never gotten any concessions on a renewal from my landlord in the past”.
From a landlord’s perspective, the approach is simple yet brilliant: tell a doctor or administrator that you have a policy and then hold firm. After all, policies can’t be broken, right? Wrong!
The reality is, their ‘Policy’ is no more than a hope that you will believe and do what they say without making any objections or pushing back. If you do push back, they might throw their weight around by using emphatic statements or making things uncomfortable for you.
Would a landlord act that way to Starbucks, Chipotle or Charles Schwab? Not a chance.
Why not? Because tenants of that nature are too savvy and experienced to be swayed by illogical statements that aren’t actually true or fair.
National tenants are involved in too many transactions and have too much experience to fall for those types of statements. The difference is that they know better and ultimately won’t do business with someone that tries to push them around or take advantage of them. They also know that new tenants get concessions, so why wouldn’t they on a renewal?
National tenants aren’t going to accept an inferior deal or terms that are worse than a new tenant would receive, and as a healthcare professional, neither should you.
With proper representation that includes a detailed strategy, you should expect to receive the same fair terms that a new tenant would receive. You shouldn’t be penalized for having been a good tenant who has paid faithfully for the past 5, 10 or 20 years.
When preparing for a lease renewal, the first step is to ensure that you start the process / transaction at the appropriate time. Beginning too early or too late can both cost you dearly. (see our recent blog on timing) Next, hire a qualified and trained agent / broker that understands your needs and specializes in helping doctors and administrators like yourself.
You don’t need to be a national tenant to be treated with respect. Contact one of our expert agents representing healthcare providers in your area to learn more. Find an Agent
To hear more about why it is so important to have expert representation, watch the video below.
Carr Healthcare Realty is the nation’s leading provider of commercial real estate services for healthcare tenants and buyers. Every year, thousands of healthcare practices trust Carr to achieve the most favorable terms on their lease and purchase negotiations. Carr’s team of experts assist with start-ups, lease renewals, expansions, relocations, additional offices, purchases, and practice transitions. Healthcare practices choose Carr to save them a substantial amount of time and money; while ensuring their interests are always first.