The resonses here are excellent and reflect the broad knowledge and experience of the Real Estate professionals who have contributed. However the answers also reflect the differences in economic strength between various locations in the country, differences between class A and B&C, retail versus office sectors, tenant's industry, and personalities.
So, all great answers begin with good questions. I would try to understand the Tenant's situation and options, as well as that of the Landlord. Also, why is the tenant asking the question? Some here have "reframed" the Tenant's current lease rate, which is very smart and may be all they need to hear, some may need more.
This is no time to focus on only the deal and maximizing the short term. We must focus on relationships, time frames and develop flexible stategies. Landlords that start to view and reinvent themselves as a partner with Tenants rather than an adversary in a negotiation, will have an advantage now and into the future.
Mollie Mossman, CPA, CMA, MBA, RE Broker
Jul 23, 2009