Pre-lease negotiation is the stage before a lease is formally signed, where the key commercial and legal terms are discussed and agreed between the landlord (or their agent) and the prospective tenant. It’s essentially the “deal-making” phase that sets the foundation for the lease document itself.

Here’s what it usually involves:

• Heads of Agreement (HOA) or Term Sheet:
  A non-binding summary outlining the core terms both sides have tentatively agreed on, such as rent, incentives, lease term, options to renew, outgoings, fit-out responsibilities, and commencement date.

• Due Diligence:
  We inspect the site with the tenant , complete a services report ,review building compliance, and assess suitability (size, access, amenities, zoning, etc).

All this information allows us to determine what we should ask the landlord for.

• Negotiating Commercial Terms:
  This includes rental rates, escalation clauses, rent-free periods, contributions toward fit-out, signage rights, and make-good obligations.

• Negotiating Legal Terms:
  Once the HOA is signed, lawyers draft and refine the lease document. This can include clauses about assignment/subletting, maintenance responsibilities, insurance, default provisions, and early termination rights.

• Fit-out & Access Arrangements:
  The tenant may negotiate early access for fit-out works or landlord contributions toward construction costs.

• Final Review & Execution:
  Once all terms are agreed, the lease is finalised, signed, and any deposit or security bond is paid.

In short: Pre-lease negotiation is where the real value is won or lost. It’s the time to lock in favourable terms before you’re bound by the lease — after signing, you’re mostly just living with what you agreed.