Can you Negotiate Commercial Rent?

Hi. I read your question about the possibility to negotiate commercial rent in India. I can offer you my help by answering this. 

I’d say yes, there is scope in negotiating the rent quoted by the landlord in India. You will have to figure out ways to come to a point where the bargain seems feasible for both parties. Let me tell you more about this.

On What Grounds is Commercial Lease Negotiation Possible?

The scope of negotiating rent would be best when dealing with a person as a landlord and not a company. A corporate landlord usually doesn’t drop the rent because of the well-built network and multiple people interested in the property.

Another thing that decides whether there is a chance of negotiating is the oversupply of commercial spaces in that area and the urgency of a person to get the property to begin business.

How to do Commercial Real Estate Lease Negotiation?

You can focus on the components of rent where there is a base rent. The other component refers to returning expenses like maintenance chargers.

So, you should first negotiate the best rent. The base rent is way higher in value than the returning rent. A small reduction in the base rent would help you in the long run in comparison to a greater discount on the returning rent. 

I hope you are now aware of whether can you negotiate commercial rent in India.