A business owner had outgrown their office. So we went looking for a new one.

We looked all over. Downtown. Ohio City. Westlake. Then we came back to Rocky River. The owner was from Rocky River, and staying there mattered.

In the end, we found an office of about 2,300 square feet. The owner got a few months of free rent. The rent stays flat. And the owner got the right to buy the building. Here is how.

How do you find the right office?

It took us a while to figure out what mattered most. Parking was a big one.

The space was close to move-in ready. But the owner also had the right to change it to fit the business.

Why did the landlord give free rent?

Free rent means you pay no rent for the first few months. Flat rent means the rent does not go up each year.

So why did the landlord say yes? This was a strong tenant. The owner had a solid business, a good background and strong finances. So the landlord had no reason to worry they would leave early.

What is a personal guarantee?

The landlord asked the owner for a personal guarantee. Here is what that means.

Many owners sign a lease through an LLC. An LLC is a type of company. With a personal guarantee, the LLC is not the only one on the hook. You are, too. If the rent is not paid, you pay it with your own money.

Can you make a personal guarantee smaller?

Yes. You can negotiate it. Here is what I tell clients:

• Put a cap on it. A cap is a limit on how much you could owe.
• Make it shorter. Does the landlord want it for the whole lease? Offer half. For example, just the first year or two.
• Put more money down. Offer a bigger security deposit. That is money the landlord holds up front. In return, ask for a shorter guarantee.

What sealed the deal?

The biggest win was the right to buy the building. During the lease, or any extensions, the owner can buy it. Both sides agree on the price and terms at that time.

That one thing sealed the deal for this owner. It was a win for the landlord, too. The landlord plans to sell the building one day.

The most important part of that deal was the right to purchase the building. That was the one thing that sealed the deal for this tenant.

In Kas’s words

What this means for you

Do you run a business on the west side? Do you need more room? Try these three steps:

1. Know your must-haves before you tour. Parking is a big one.
2. If your business and finances are strong, ask for free rent and flat rent.
3. Want to own one day? Ask for the right to buy in your lease.

My take

A strong tenant gives the landlord no reason to worry. And the right to buy can be a win for both sides.

How I can help

I help business owners find office and retail space in Rocky River. I work across the west side, too. See my listings, or read more Rocky River articles. Own a building? Read how a Lakewood landlord filled five small offices.

Tell me what you need in the form below.