When your lease term is almost expiring, you will consider whether you want to renew it or move to another location. In New Jersey, a landlord must allow a tenant to renew their lease unless the landlord has good cause for an eviction under the Anti-Eviction Act. Thus, your landlord may not simply deny your renewal.
If you want to remain in your current premises, here are three things to keep in mind before renewing your lease:
Issues that affect your business
If your space has an issue(s) that the landlord has not solved despite informing them or you discovered them recently, request your landlord to make the necessary changes before you can renew your lease. You can also use the issues in question to negotiate the terms of your lease.
Be honest about the space
After using your current space for a long time, you likely have adequate information to determine if it’s the right fit. You have to be honest when doing this assessment. Do the location, infrastructure, amenities and other factors you considered before signing the lease agreement still benefit your business?
If not, you may need to look for another space, or you can negotiate your lease renewal.
See what else is in the market
Even if your current space is still “perfect,” consider looking at what else is in the market to understand the market conditions. Besides, you can find a space that checks all your boxes.
Whether you stay or move out, the knowledge you obtain from your research can help you make informed decisions and give you the upper hand when negotiating your renewal.
You need to be careful when renewing your commercial lease. Consider legal guidance when handling negotiations and any disagreements that may arise.
