How Landlords Win Before Negotiations Even Begin

If you think your lease negotiation starts at the table, you’re already behind.

By the time you even think about negotiating, your landlord has been working the angles for months—sometimes years. And I don’t say that to make landlords sound malicious… it’s just the truth about how the system is built.

The Playbook They Don’t Talk About

What many companies don’t realize is that landlords follow a process—and that process protects their interests, not yours.

1. The “Standard” Lease That’s Anything But
   The lease you’re handed has been refined over the years to favor the landlord. Renewal clauses, operating expenses, who’s responsible for repairs—every line is intentional.
2. The Market Rate Illusion
   “Market rate” sounds official, because there’s one true number everyone agrees on. There isn’t. Most of the time, it’s whatever number works for the landlord. They’ll point to a handful of deals that make their price look fair and—surprise—skip the ones that don’t. If you’re only looking at their version of the market, you’re already in trouble.
3. Strategic Vacancies
   Here’s something a lot of people don’t realize—sometimes a landlord would rather let a space sit empty than cut the rent. Why? Because one discounted deal can drag down the value of every lease in the building. So they hold the line, even if it means turning away a perfectly good business like yours.

Why You’re Already Behind

By the time that first proposal hits your desk, the landlord’s already played out the whole deal in their head. They’ve:

• Picked the outcome they want and their fallback
• Written the lease to protect both
• Collected “market data” that makes their number look right
• Decided what they can give up without actually losing anything

It’s like sitting down at a poker table when the other player already knows your cards—and you don’t have a clue.

How to Level the Field

You can absolutely flip the leverage—but you have to change how you play the game.

• Start Early – Six months from lease expiration is too late. Start a minimum of 24-36 months ahead to create options.
• Control the Data – Don’t rely solely on their definition of “market.” Get independent numbers.
• Choose the Right Advocate – Work with someone who only represents business leaders—never landlords.
• Create Real Options – The more choices you have, the less control they have.

The Bottom Line

I’ve seen too many great companies walk into negotiations thinking they’re starting from scratch. They’re not—and the landlord is counting on it.

When you know their playbook, you can protect your business, your bottom line, and your options for growth.

Because in commercial real estate, you don’t get what you deserve—you get what you negotiate.

Frequently Asked Questions:

1. Are all lease terms negotiable—or are some just set in stone?

This is one of the most commonly asked questions and hits because many business leaders assume lease terms are non-negotiable. In reality, every part of a commercial lease is on the table—rent, operating expenses, build-out allowances, flexibility, renewals, even subleasing and assignment rights. Revealing this empowers leaders to shift the negotiating balance.

2. What hidden costs should business leaders know before signing?

Hidden expenses are a top cause of surprise post-signing. Beyond base rent, leaders often face charges like CAM (common area maintenance), real estate taxes, insurance, and build-out costs. Highlighting these makes the blog a proactive resource—especially after discussing how landlords set the rules early.

3. When should a business start talking about flexibility—and what flexibility can you actually ask for?

Flexibility is more critical than ever for businesses that may need to scale, shrink, or renegotiate mid-term. This FAQ directly ties back to leveling the field—because landlords don’t give flexibility freely; you have to ask for it. Common requestable terms include break options, expansion rights, sublease permissions, or rights to adjust space during build-out.