Getting my first commercial lease space...questions
I own a mortgage company and need a legit office space. Looking for about 1000 to 1500 square feet in an open plan. This leads me to retail storefronts and shell space in a professional park requiring buildout. 

I’m wondering what the negotiation process is like? I have a space in mind that requires build out, floors, ceiling and paint. They ask 15/sf modified gross with CAM included. Lease is three years. 

I’d love to get this for 13/sf since that would fit my budget better. This isn’t the perfect ideal space for me but it will work. 

The space doesn’t Have a broker it is listed by the building owner who happens to also be a RE broker. It’s been listed over three months. 

Any advice on getting it down and making it a good deal for me?
[{"id": "e6blkny", "text": "See what you can get elsewhere and negotiate. Chances are the guy owns it and can take or leave your little lease, if you are a pain he will not lease to you since he manages the place for himself. What is the parking like? Is it up to Ada code? Will you outgrow the space shortly? \n\nThree months is nothing for commercial, I have seen small spaces vacant for years. And it is usually because the brokers could care less who takes the space, unless they are planning of selling the building soon, you have little negotiating power. \n\n", "replies": [{"id": "e6bxk1y", "text": "He said the lease is three years, not that it's been vacant for three months...?", "replies": [{"id": "e6by4yo", "text": "He mentioned it's been listed for three months... which is virtually nothing as far as time is concerned. It doesn't add any negotiating power to the tenant.", "replies": [{"id": "e6c7arz", "text": "I... can't read. Also, agreed.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e6bvzcb", "text": "Ask for lease comps at the property and comparable properties, and also make sure to ask for both *superior* and *inferior* comps.  Then offer $12.50PSF for the space.  See if he counteroffers $13.00.  Good luck!", "replies": [], "depth": 1}, {"id": "e6c2y61", "text": "I ran into the broker when I went to see it today at the office park. Turns out it's been listed 9 months. They are offering $11,000 towards build out, which should cover me since I don't want to add walls and all...they'll need to build it out anyway because everything is torn down right now. Thinking forward, the space might not be right for me a year from now. I don't need \"extra\" space right but could be pulling more employees in within 6 months. I guess that's the hard part right? Budgeting space and growth. ", "replies": [{"id": "e6ca7sv", "text": "I am a broker in the DC market. There are others concessions you should be asking for, depending on your market. For instance, for abatement in my area it's \"market\" to get 1 month free per 1 lease year. ", "replies": [], "depth": 2}, {"id": "e6ctt6b", "text": "I will use one element of your deal to explain my reply above to top comment. They offered you $11,000 in Tenant improvements. Great, what is the construction estimate for the work that needs to be done? The bigger question is who gets to keep the remaining balance on the $11,000? Answer: The Tenant or we will use it to trade up for something else. Now even the most astute landlord reps cannot argue away all 40+ individual business points, that should be brought up in a proper negotiation, without giving up things you want and need. Tenant reps are in a natural offensive posture, and except in certain markets/personalities, landlord reps are in a natural defensive posture. [It\u2019s a trial by combat, demand a champion, Tyrion!](https://youtu.be/mbUeobf0MRg)", "replies": [{"id": "e6dkhsw", "text": "&gt; all 40+ individual business points, that should be brought up in a proper negotiation\n\nI'm surprised no one has asked - can you please enlighten us as to these 40 individual points? ", "replies": [], "depth": 3}], "depth": 2}, {"id": "e6dtw8t", "text": "What are they asking for the space?\n\nTalk to the neighbors and see what they are paying, ask about pests flooding police activity. \n\nHave the building inspector come through and let them know what changes your planning. \n\nCheck and see what flood zone you're in. \n\nOffer 10 and splitting difference it's costing him big time for it to be empty. \n\nAsk about renewal and limit the percentage of increase when it's renewed. \n\nAs for maybe needing more space why not instead think of opening a 2ed location. \n\nGood luck.\n\n ", "replies": [], "depth": 2}], "depth": 1}, {"id": "e6c3wrd", "text": "you will be able to get more free rent than TI dollars, do not sign a personal gurantee of anything more than half the primary, make sure you have renewal options, I would say two to three (3) or (2) year options at 10% increase. Fight the annual bumps in base rent.", "replies": [], "depth": 1}, {"id": "e6ckfor", "text": "Get a broker ", "replies": [{"id": "e6cpg6n", "text": "Should be top comment", "replies": [], "depth": 2}, {"id": "e6cpurx", "text": "Commercial real estate attorney here.  I can't recommend this enough.  ", "replies": [], "depth": 2}, {"id": "e6csn63", "text": "For everyone that doesn\u2019t understand why this is top comment, please see below. You absolutely must hire a broker to protect you and your business long term. This is not like renting a college apartment, and it is not about how smart you are or how good of a negotiator you think you are. The lease language and ownership structure complexity can and often will be staggering, but only to those that understand its dance, its art. Most great, experienced business people cannot catch everything that\u2019s going on. You will not win in the long run without a broker, it will only be varying degrees of losing. The worst part is,  you will justify it to yourself and think you stood strong, got a good deal, and saved some money in the process, but what you will not know is how bad you have lost until your ass is in a sling, paying exorbitant charges, and/or caught up in legal battles over it. Be smart friends, farm it out. ", "replies": [], "depth": 2}, {"id": "e6lrvr1", "text": "I\u2019m having a hard time finding one to represent me as a tennant that doesn\u2019t want me to take one of their listings. I know this isn\u2019t a huge 100,000sf decade long lease but I thought someone would work with it. \n\nI\u2019m going to see some other spaces with a listing broker later. I know ultimately he represents the landlord but I\u2019m still going to talk to him about some concessions. Will also see if he will show or work with some other listings that are not his. \n\n", "replies": [{"id": "e6mys52", "text": "Call a few shops in your area and tell them your situation. There\u2019s junior brokers at every shop have no problem working small deals. ", "replies": [], "depth": 3}, {"id": "e713zip", "text": "That broker might not be giving you the best advice. The goal of the listing broker is to get the best deal possible for his client the landlord. If you are represented by a broker they will be trying to get you the best deal possible. Tenant brokers are generally paid by landlord broker fees so in most cases there is no expense to you.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]