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Squeezing Extra Profit From Commercial Leases

  The Key Is a Regular
  Review and Adjustment

Almost all companies grow, shrink or diversify over time. So they need more, less, or different types of space.

If you negotiate your office rental agreement effectively, youíll save the cost of relocating every time your company changes size or direction. For that matter, you can use your lease to generate extra income.

Thatís why itís a good idea to periodically audit all leases, including those of your company's branches or divisions. Check for modifications you might need when itís time to renew the contracts.

Here are some quick ideas:

 When you renew your lease, ask the landlord to provide extra improvements or several months free rent, in the same way a new tenant is provided with extra benefits. This makes good sense in markets where office space is plentiful.

 If your company is growing, calculate the growth rate, then rent enough space to accommodate future expansion. Negotiate a clause that allows you to sublet the space you arenít using yet or rent out space periodically for a one-time fee.

 For that matter, check your offices once a year for efficient use of space. For instance, you might be able to consolidate staff and equipment. Then you can allow your customers to use any space you have left over for seminars or employee training in return for a fee.

 Always measure your floor space to ensure that you're getting the full amount of space provided by the contract. Ronald J. Cappuccio, J.D., LL.M.(Tax) 1800 Chapel Avenue West Suite 128 Cherry Hill, NJ 08002 Phone:(856) 665-2121      Fax: (856) 665-9005 Email:

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