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• How to Renegotiate Your Lease

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  TU ABBY

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  How to Renegotiate Your Lease

  Over the past twelve months, effective office rental rates for “A” grade space in Shanghai have fallen on average at least 30 percent to around 7.5 RMB per square metre per day, while vacancy rates have risen to more than 15% by the end of September. While all of this may seem bad news for property owners, it presents an excellent opportunity for occupiers, armed with the right knowledge, to bring down their rental costs by renegotiating their leases.
  
  While the figures and exact conditions are all relevant to Shanghai, similar conditions can be found in markets across China and the region. And the opportunities for cost savings are similarly transportable.
  
  New Space and Weak Demand Create Deals for Tenants
  
  In the fourth quarter of 2009 more than a quarter million more square metres of A grade office space is planned to come on line with new supply for 2010 projected at more than 1 million square metres. At the same time, in the wake of the world economic crisis, most international firms are remaining conservative about their spending. This is driving continuing good conditions for tenants, particularly in Shanghai's Pudong district.
  
  Rather than maintaining the status quo during a rental downturn, smart tenants should engage with their landlords and use the downturn to negotiate more flexible and better terms for their existing leases not just for new leases or renewals.
  
  Read the whole story at: http://rightsite.asia/en/article/how-renegotiate-your-lease
  
  • 16 Dec 2009, 11:01 am
  TU ABBY wrote: > Over the past twelve months, effective office rental rates for “A” > grade space in Shanghai have fallen on average at least 30 percent to > around 7.5 RMB per square metre per day, while vacancy rates have > risen to more than 15% by the end of September. While all of this may > seem bad news for property owners, it presents an excellent > opportunity for occupiers, armed with the right knowledge, to bring > down their rental costs by renegotiating their leases. > > While the figures and exact conditions are all relevant to Shanghai, > similar conditions can be found in markets across China and the > region. And the opportunities for cost savings are similarly > transportable. > > New Space and Weak Demand Create Deals for Tenants > > In the fourth quarter of 2009 more than a quarter million more square > metres of A grade office space is planned to come on line with new > supply for 2010 projected at more than 1 million square metres. At > the same time, in the wake of the world economic crisis, most > international firms are remaining conservative about their spending. > This is driving continuing good conditions for tenants, particularly > in Shanghai's Pudong district. > > Rather than maintaining the status quo during a rental downturn, > smart tenants should engage with their landlords and use the downturn > to negotiate more flexible and better terms for their existing leases > not just for new leases or renewals. > > Read the whole story at: > http://rightsite.asia/en/article/how-renegotiate-your-lease