There have been plenty of stories in the media about the cash flow crunch facing many small businesses today. Many business owners have been making cutbacks looking to get by.
But according to one online community for small business owners, there is one place that needs to be examined in the effort to save money. That is the commercial real estate lease (or leases) for your office(s). In my view, this is something where your skills and knowledge as a mortgage broker should give you an edge.
Executives at PartnerUp cite National Association of Realtor reports noting commercial real estate vacancy rates expected to be above 20% this year. Furthermore, the company points out, rents are down 44% since the peak of the market, making it a good time now to renegotiate or renew your lease.
Steve Nielson, the chief executive of PartnerUp suggests business owners renew their lease early if they are planning to stay where they are. Now is the time to approach your landlord and inquire about extending the lease in exchange for a discount in lease rates. Or if your business is growing, you can also try to negotiate for more space but at the same price you are paying now.
Leverage vacancy information about other space in surrounding buildings and use that information to renegotiate your current lease. Or take advantage of that information to find new space at the same price with additional costs covered under the rent.
Also take advantage of the fact that prime space, like the office on the corner, could be available. Mr. Nielson said moving into a prime location could provide the boost in sales you company needs in 2009.
To learn more about PartnerUp, an online community aimed at small business owners and entrepreneurs, visit
