Many businesses in Orange County believe that when it comes to their current lease, they have to accept the terms until the lease expires. Businesses that signed long-term commercial leases during the economic peak may find themselves paying a 20 percent premium over current market rates without any idea of how to change it.

Most landlords, contrary to popular belief, are willing to renegotiate leases to market rates assuming that the tenant can present a compelling case that adds value to both parties. Tenants obviously need to reduce rent to cut expenses and increase profit while landlords need income and want to keep tenants if at all possible. With the area’s high vacancy rates, losing a tenant can mean that space will go unoccupied for an extended period of time and the opportunity cost to inflexible landlords is prohibitively high.

There are some landlords that won’t renegotiate terms because they cannot afford a short term decrease in revenue and some landlords don’t renegotiate simply on principle. However if you’re willing to commit to an additional term at your current location, most landlords will be happy to hear your proposition.

If you find yourself in a situation where you need to reduce your rent, contact our Orange County office and we’ll be happy to look at your current lease and put together a proposal that can save you money while providing value to your landlord.