The process can be complex and time-consuming. Before signing the lease, the building owner drafted a letter of intent (LOI), initiating the pre-negotiation process. This involved discussions on the lease length, rent structure, and additional benefits, laying the groundwork for the lease agreement. To ensure a mutual understanding of the deal, a lawyer, a commercial real estate broker, and a financial analyst consultant were all engaged at different stages. As a business owner, it’s essential to coordinate with each expert, verify the drafted LOI’s mutual benefit, and build trust among the parties involved.

The attorney played a massive role in the lease portion of the negotiation and broker. His role was significant and crucial in ensuring the lease’s language matched what was agreed upon in the LOI negation. The broker worked with management to push things along the way—fantastic coordination and teamwork.

Coordinating these diverse, skillful individuals and groups was crucial. Julio, the business owner, facilitated collaboration through email and virtual and in-person meetings, ensuring that the legal, negotiation, and financial analysis components were aligned with Micro Plant Studio’s business plan. Before finalizing the lease, multiple revisions were made to ensure legal compliance and mutual benefits were met.

Hiring an attorney and financial analyst could be costly, but fortunately, the city of Boston’s small business department offered assistance in finding financial resources to cover these expenses.

In negotiating a lease, it’s crucial to be open-minded, establish clear boundaries, and be prepared to compromise. These qualities empower you and prepare you for the negotiation process. The process may be lengthy, so working with trusted individuals who are experienced in such negotiations is vital. It’s also important to keep your emotions in check and try not to take anything personally; this can be challenging.

Takeaways:

• Ensure the LOI language is reflected on the lease.
• Engage all parties throughout the process–communication is critical.
• Do not rush the process; know when to push or walk away.
• Ask questions as the process grosses.
• Take time to reflect and make necessary adjustments.