How best to renegotiate rent on commercial property...?
January 18, 2010 11:33 AM Subscribe
How best to evaluate what a commercial rent should be--and renegotiate with the landlord? Toronto, if that matters.
I run a shop that's been in the same location for almost a quarter century. The rent goes up every year. Empty, larger, more modern shops in the same area are cheaper on the rare occasion they become available. Moving would be a pain in the ass though I'm not completely against it.
What's the best way to find out what the rent on my actual shop would be if I vacated and how best to renegotiate the rent, which I think is too much by 100%?
Are there people that do this type of thing? Realtors? Lawyers?
In case it's relevant, the store is on Yonge Street in Toronto, in an upscale neighborhood. When properties do become available, they're gone within days. My shop is on the second floor, which I hate, but by June my rent will be about the same as ground floor units of the same size.
What's my best move that doesn't result in my landlord throwing me out on my ass? I haven't had a lease in 2 years because I'm frustrated and seriously thinking of moving.
I run a shop that's been in the same location for almost a quarter century. The rent goes up every year. Empty, larger, more modern shops in the same area are cheaper on the rare occasion they become available. Moving would be a pain in the ass though I'm not completely against it.
What's the best way to find out what the rent on my actual shop would be if I vacated and how best to renegotiate the rent, which I think is too much by 100%?
Are there people that do this type of thing? Realtors? Lawyers?
In case it's relevant, the store is on Yonge Street in Toronto, in an upscale neighborhood. When properties do become available, they're gone within days. My shop is on the second floor, which I hate, but by June my rent will be about the same as ground floor units of the same size.
What's my best move that doesn't result in my landlord throwing me out on my ass? I haven't had a lease in 2 years because I'm frustrated and seriously thinking of moving.
Response by poster: Thanks for your answer valkyrnyn. Just to clarify, the lack of lease has not affected the price. It goes up the same percentage every year whether we have a lease or not.
posted by You Should See the Other Guy at 12:15 PM on January 18, 2010
posted by You Should See the Other Guy at 12:15 PM on January 18, 2010
Then just go the realtor and start looking. If you find something you like, either move, or get the landlord to adjust your rent, with the help of an attorney as it becomes necessary.
I think that's really all there is to it.
posted by valkyryn at 1:04 PM on January 18, 2010
I think that's really all there is to it.
posted by valkyryn at 1:04 PM on January 18, 2010
The city has a program in place (which may not apply in your case) where the landlord gets a partial rebate on property taxes if a store isn't rented out. In some cases, where the owner has several properties, it's better for them to have some of them vacant. This accounts for the occasional stretches of closed storefronts on Yonge, Bloor, Danforth, etc. A lawyer would be able to tell you if this property would fall under that policy; if it does, the landlord may have some incentive to see you move.
posted by Chuckles McLaughy du Haha, the depressed clown at 1:13 PM on January 18, 2010
posted by Chuckles McLaughy du Haha, the depressed clown at 1:13 PM on January 18, 2010
This thread is closed to new comments.
You may find that the mere fact that you haven't signed a lease is a contributing factor to it being so high. Going month-to-month increases your landlord's uncertainty quite a bit--he may, or may not, need a new tenant next month--and you're going to pay a premium for that.
posted by valkyryn at 11:38 AM on January 18, 2010