While it may be true, it is rather simplistic to say landlords want the highest rent and best terms available, there are other issues landlords consider when negotiating a commercial lease that tenants should be aware of.
Landlords must have a clear vision of their goals and objectives and rely on commercial listing agents to provide input about competitive commercial properties, lease rates, lease terms and general commercial properties market conditions in the area.
Another issue for the landlord to consider is tenant mix. The landlord is most interested in the tenant’s use of the commercial property.
A office building landlord is not likely to want a psychiatrist in the building whose approach is “scream therapy” or prospects interested in operating an insurance agencies or law firms to a landlord of a medical office building who is targeting only medical office professionals.
A shopping center landlord will have a very specific tenant mix in mind for the shopping center and will likely turn away tenants that don’t fit into that mix.
The tenant’s credit and financial condition are also important issues for the landlord to consider in leasing the commercial space.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared