When you choose a commercial premises for your business, you will often negotiate with the landlord before committing to the lease. The rental amount, for example, will likely be the subject of negotiation. However, you may need more to ensure that the commercial premises suit your circumstances. Indeed, as a commercial tenant, you may wish for a better overall financial package. This is where lease incentives help. Landlords or lessors may offer a variety of incentives to tempt you, as a potential tenant or lessee, into signing a commercial lease agreement with them. Lease incentives also help landlords to preserve their market rent figure. You should gain as many lease incentives as possible when you take on a new lease agreement as a commercial tenant. This article will outline typical lease incentives of commercial leases.<\/p>\n\n\n\n
As a commercial tenant, it is helpful to note that when you negotiate lease incentives<\/a>, you should consider what affects a commercial landlord’s offers and decisions. The incentives they offer will depend on, for example:<\/p>\n\n\n\n For example, suppose a shopping centre is going through a quiet period. Accordingly, landlords may offer commercial tenants retail space without rent if they pay other rates.<\/p>\n\n\n\n As a tenant and business owner, you should understand that if you receive incentives, these can have tax obligations for which you should seek professional advice. <\/p>\n\n\n\n Landlords sometimes use rent incentives<\/a> to encourage a potential business tenant to lease the commercial premises. We explore rent incentives below.<\/p>\n\n\n\n A typical way a landlord may incentivise you to take a lease agreement is to offer a rent-free period. Accordingly, this means there will be no rental charge for part of your lease, usually at the beginning. This can help you as you can:<\/p>\n\n\n\n Rent-free periods can be very generous. For example, if you take on a 10-year lease in London, you may receive a rent-free period of 25-29 months.<\/p>\n\n\n\n Commercial landlords may offer a one-off premium to incentivise you to use their property for your business premises. This means they will provide you with payment back on your lease for a specific reason. <\/p>\n\n\n\n If the rental amounts seem too high for you (as a potential tenant), a landlord may agree to decrease it and then gradually increase it to the level they want. Alternatively, they may keep the rent low and schedule a rent review later.<\/p>\n\n\n\n A difficulty for you as a commercial tenant may be the time your rent payment is due. This is often upfront and more than one month in advance, which can be a considerable burden for a business. Therefore, commercial landlords may be willing to delay payments or agree to smaller payment periods to help your cash flow.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
Rent Incentives<\/h2>\n\n\n\n
1. Rent-Free Period <\/h3>\n\n\n\n
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2. One-Off Premium<\/h3>\n\n\n\n
3. Gradual Rent Increase<\/h3>\n\n\n\n
4. Rental Payment Basis<\/h3>\n\n\n\n