Step 5: Negotiating Your Next LeaseBY Phillip Chapman
Stage 5 – Execute
Stage 5 is the implementation of the agreement made between yourself and the other parties involved. In this case, the fifth stage is all about executing the lease agreement, which is a legal contract in an exchange of certain rights over land.
An executed contract is a legal document that has been signed off by the people necessary for it to become effective. The contract itself is often made between two or more people, but it can also be between a person, entity, or multiple entities.
Great care must be taken in reviewing and understanding the contents of the entire document package, as these may include a series of separate documents as well as associated obligations. These may include a Letter of Offer, (formalising the terms from Stage 4- The Conclude), Draft Lease, Lessor’s Disclosure Statement, Agreement to Lease, Bank Guarantee, Certificate of Currency and the list continues on.
This stage may also be viewed as preparation for the next negotiation opportunity. Although it is hard to believe so with a new lease term, this is not the case, as in politics “no sooner have politicians been elected, they are campaigning for the next election”.
But unlike an election it is essential to follow through on promises (or representations) made in order to strengthen relationships and build trust. This will lead to easier negotiations next time around.
It is also important to remember that during the execution it is adivsable to apply the total negotiation process in the rise of unexpected events, failures in performance and inevitable changes.
Anticipating complications is difficult, however Retail Shop Leasing is one of the most complex layer cakes of negotiation, involving numerous internal and external parties. It may be wise to keep negotiation strategies on standby.
As this is the final segment in this mini-series, we look forward to bringing you other related topics on the negotiation, management, and strategic tools needed to be an effective Retail Lessee.
Need leasing advice or management services? The ARA has partnered with Lease1 to save retail tenants time, money and stress in their lease negotiations. To learn more about ARA Leasing Services contact http://lease1.pages.ontraport.net/enquiry or email firstname.lastname@example.org.
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Lease 1 Retail Leasing Do You Want A Better Deal On Your Lease? "Retailers don't get what they deserve... they get what they negotiate." Lease1 is the leader in its specialist field and is committed to providing personal, timely and cost-effective services to save tenants time, money and stress in their lease negotiations. Securing and protecting the commercial terms of our clients’ leases is our core business, supported by wide-ranging tenant consultancy services, encompassing lease information and research, site sourcing and selection, dispute resolution, retail franchising and portfolio administration. Our industry-leading Lease1 service adds security and value to a retailer’s business through professional lease negotiation and tenant representation on: • New Leases • Lease Renewal • Lease Options • Rental Research • Site Selection • Dispute Resolution • Crisis Management