DON’T SIGNTHIS LEASESECRETS: TO CASH FREE RENTS AND BONUSES FROM LANDLORDS IN THIS REAL ESTATE pot

DON’T
SIGN
THIS LEASE
SECRETS: TO CASH FREE RENTS AND BONUSES FROM
LANDLORDS IN THIS REAL ESTATE CRISIS
By Jean-Louis Racine, Lawyer, Real Estate Broker
DON’T SIGN THIS LEASE

Racine
www.commercial-lease-expert.com

By Jean-Louis Racine, Lawyer, Real Estate Broker.
Copyright 2011 by Jean Louis Racine

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Cover photo Copyright 2011 Jean Louis Racine

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PREFACE

Notes To The Reader

I am not a writer nor an author but I have worked as a commercial real estate lease negotiator
for the last 33 years. I wrote this book in a style that reflects the way I talk to my clients. I could

have hired a ghostwriter to write this book, but I did not. Many told me my way of expressing
myself is too terse and candid! You will be the judge.

I wrote this book for your benefit without any intermediary between me and you, the reader. I
wrote it in the style we use to write on blogs every day—simply, to let you know about the
benefits and advantages you can enjoy in commercial real estate transactions.

I am a Commercial Lease Negotiator, accredited as a lawyer by the Quebec Bar, Québec,
Canada, in 1978, and as a real estate broker in 1980. If you would like more information on my
business and me go to www.commercial-lease-expert.com.

Thank you.


What Does This Book Assume?

I assume that you have two sharp pencils with you, because what you will learn might be worth
at least $25,000.00 in savings for you. You will see for yourself. As you rea, a sense of wonder
will awaken within you.
Let me know your savings.
I want to read about you, so send me your story : www.jeanlouisracine.blogspot.com
Enjoy and count your gains.
Thank you for your patronage; you are more appreciated than you think.


Tell two of your friends.

100% Money Back Guarantee.
If my book, doesn't give you at least $1000.00 (more than 50 times what you paid for my book)
worth of free rents, bonuses, or incentives from commercial landlords, when negotiating your

lease, return it at any time (with explanations) up to a full year from the date you purchased my
book. I'll promptly refund the money you paid, no questions asked
To my four children (whom I have raised alone)
"In every success story, you find someone who has made a courageous decision."
Peter F. Drucker

CONTENT

Introduction
Chapter 1: Crisis Opens Opportunities
-Do You Need a Guide?
-About Your Power
-The Tenant's Inertia
-Where Are the Traps?
-Venture Capital and Startups
-The Greatest Fear of Landlords
-For Your Protection Only
-Don't Leave Home Without It
-You Will Have To Go to Court!
-The Offer to Lease: Is It Binding?
-Where Are the Hidden Factors?
-Attractive Cleopatra
-To Stay One Step Ahead
Chapter 2: Landlord Straight Ahead
-Bags of Money
-Leasing Brokers
-Tenant Representatives
-Commissions Paid by Landlords
-Benefits of Doing Business with a Tenant Representative
-How Much Is A Tenant Representative Worth to the Tenant?

-Dreaming Your Space
-Old Furniture
-Google Earth: It's Free
-What Is Your Usable Space?
-Why Do Some Landlords Jack Up the BOMA Measurements?
-Where Are Your Gains?
-Let the Magic Begins
-Your Objectives

Chapter 3: How Many Buildings?
-Don't Call the Landlords
-How Many Rents Will You Pay?
-"Net" or "Net Net" or "Net Net Net" or Gross?
-Are You Worth More Than a Hockey Player?
-Full Impact
-Commission's Investment
-Landlords in Competition for Your Business
-The Landlord's Goals
-The Ping-Pong Table
-Pictures and Videos of Buildings
-Don't Make the First Offer

Chapter 4: Slow Down, You Move Too Fast
-The Day After
-Delete Buildings
-The Love Affair
-Those Women !!!
-Opportunities
-Adjust and Refine Your Requirements
-Don't Swim With a Shark

-Basic Rent
-Tenants Who Pay Their Construction Costs?
-Hidden Provisions That Work Against You
-What's the Catch?
-What's the Difference? You Don't Listen!
-Will the Landlord Finance You?
-How To Increase Your Allowance
-Don't Finance Your Allowance for Leasehold Improvements
-You Don't Need Any More Trouble!
-With You, the Landlord Made $$$
-The Missing Clause
-The 95% Clause

Chapter 5: More Bonuses For You
-The Modified Offer to Lease: What Did They Forget?
-Complete Your Financial Spreadsheets
-The Most Popular Goodies
-How Much Free Rent Should You Ask For?
-How to Convert Free Basic Rent
-The Landlord Flinched
-Construction of a New Building
-Taxation of Free Rent
-Separate Agreement for Free Rent
-Can You Buy Up Your Rent?
-More Free Rent
-Accordion Lease
-Let Them Fight To Sign You

Chapter 6: Special Allowances For You
-Free Parking

-Free Signage Rent
-BONUS: Moving Allowance
-Furniture Allowance
-Computer Allowance
-Cancellation Clause
-Vacations, Cruises, and Car Allowances
-Preferred Shares
-Government Money
-Industrial and Technological Parks
-Real Estate Brokers' Commissions
-Let's Understand Each Other

Chapter 7: Don't Sign This Offer To Lease
-What Guaranty?
-Are You In Default on Your LC?
-Guaranties and Bad Times
-Are You a Risk for the Landlord?
-Do You Want Your Guaranty Back?
-Who Should Hold Your Deposit in Trust?
-The Landlord's Architect Free of Charge
-Your Architect
-The Architect's Authority
-The Engineers
-What is "Standard"?
-Where Are the Hidden Costs?

Chapter 8: Operating Costs = Free Lunch For Landlords
-Window Dressing
-Negotiate Operating Costs
-NO Incentive? You Lose

-How Many Buildings?
-How Can You Hire a Lease Auditor?
-Don't Leave Your Business in the Hands of the Landlord
-LEED Buildings
-The Entire Agreement

Chapter 9: Lower Your Construction Costs
-Space Planning and Lease
-Those Missing Elements!
-Do You Know the Construction Business?
-Construction Letter to the Landlord
-Confirm Construction Costs
-Erase the Landlord and Contractor's Fees
-Ask For a Turn-key
-Change of Work Orders
-He Doesn't Care About You … Until
-For Your Protection: Don't Sign Your Lease Alone!
-Lease Summary

Conclusion
Order Forms
Bibliography
"Each indecision brings its own delays and days are lost lamenting over lost days What you
can do or think you can do, begin it. For boldness has magic, power, and genius in it."
Johann Wolfgang von Goethe
Mark Twain wrote:
"A man’s intellect is stored powder; it cannot touch itself off; the fire must come from the
outside.”

This book is the "fire" you need to reduce your rent!

Introduction

It's time to awaken

You are in a deep sleep. As I count backward from 10 to 1, you will awaken. That's the image
you probably get when you think of hypnosis. And you're absolutely right. Hypnosis is about
getting you so relaxed that your mind, especially your subconscious, is more receptive to
commands.

For the last thirty-three years, I have seen many tenants sign unbelievable leases under the
influence of landlords and leasing brokers! Tenants should sign a lease in the name of their
business or in the name of their corporation, but I have seen many tenants sign "personal"
leases for over three million dollars!

It seems that these tenants have been hypnotized.

Landlords and leasing brokers look them in the eyes, tell them their rent conditions, and tell
them to sign a lease, and bingo: the tenant obeys and signs the lease. I have even seen tenants
sign this most important contract of the year in an hour!

How could that be possible?

Do You Want a Rent Reduction?

As a tenant, you are not alone. There are over 19 million commercial tenants in America, and all
landlords are on the defensive and are more than willing to negotiate their lease agreements.

It's taken me over thirty-three years to figure out all the techniques and strategies that you're
about to learn. I spent twelve years of hard work as a lawyer for landlords and then twenty-one

years for commercial tenants exclusively.

Halloween

Do you remember all the news circulating about sadists who put razor blades in apples and
booby-trapped candies?

During all those years, I, for one, forbade my four children to eat any "Halloween apples." I
carefully examined all candy bags and unwrapped and cut into pieces all the candies that my
children had picked up. Did you check the apples your children brought back home?

Would you have eaten an "Halloween apple"?

Your Lease Might Be Like an Apple filled with Razor Blades.

Don't sign any Offer to Lease!

Don't sign any lease before reading my book!

Wouldn't you be excited by the prospect of reducing your rent?

This is a very practical book. It might be a textbook. You won't find legal explanations or an
incomprehensible discussion of real estate commercial law.

You'll just find plain business strategies that have worked for me for over thirty-three years. This
book is also meant to be used as a reference book and a workbook. Nothing's magical. I have
improved my strategy for the last thirty-three years, and it has proven to protect the interests of
my clients, commercial tenants.

These strategies will teach you how to checkmate landlords and leasing brokers, and how to

collect more money from your commercial lease! The best way to use it is to follow me through
all my examples. I will show you how you can easily obtain benefits in your negotiations with
landlords and leasing brokers.

Many landlords and real estate brokers will say it is impossible to add all these gains that I will
show you in my book. And they are right. I do not pretend you will be able to realize all the
savings and benefits discussed in this book in your transactions with landlords and leasing
brokers. But I believe that this book will enable you:

1) to know what to ask landlords and leasing brokers; and
2) to get concessions and unanticipated benefits.

Proven Strategies

I wrote this book as a textbook for my daughter, who began to work for me two years ago. I
wanted her to understand all the processes and strategies, step-by-step, that lead to lower rent
and higher allowances for my commercial tenant clients.

As I am more of a negotiator than a writer, I wrote small paragraphs with many examples and
stories so as to help her understand as best I could. All the explanations are kept simple to
make them understandable and ensure that my recommendations lead to excellent results for
my clients.

As you read this book, we will follow the same strategies as though we were negotiating your
commercial lease. My road map will unfold before your eyes as we negotiate each element.
Should you be asking for money as part of the deal? You might be surprised!!!

Keep your eyes wide open!

For easier understanding of each independent step in this strategy, I have included many

spreadsheets as examples. Throughout this book you will be adding "Gains in Your Account," or
money you have negotiated from landlords and leasing brokers for your exclusive benefit. I have
added many examples of what you should ask for in order to transfer money from the landlords'
and leasing brokers' pockets to your own.

As you progress, your spreadsheet "Gains in Your Account" will progress with you, and your
"Gains in Your Account" will increase. It will be fun! Feel the excitement!

Imagine . . . Your Gains

Some people might read this book and say "I know this stuff" or "this stuff ain't working." I
suggest that you try it my way first, relying on my thirty-three years of experience. Don't assume
that if this "stuff" didn't work last time, it's not good! Keep on trying. Keep on asking!

In some circumstances, some strategic elements will be successful and some won't work. But
my final results were always in favor of my clients because I knew what to ask. Persistence and
asking for what you want are the keys to your success.

"The future belongs to those who see possibilities before they become obvious."
Theodore Levitt, author.

Visualize Your Gains As Already Yours

Close your eyes and visualize each one of your demands as already being yours! Visualize
already having a total gain of $25,000.00 or (write your number) $ in your
spreadsheet, "Gains in Your Account." Imagine improving your financial gains. Imagine
diminishing your rent by 20%.

You are more powerful than you think! My goal is to help you understand the exponential power
of your lease and, thus, gain immense appreciation of your "checkbook" from the landlord.

Because this is what you are: a checkbook for the landlord. Before you become a checkbook,
make sure this landlord opens "his checkbook" to transfer many thousands of dollars to you.


Story

I have included real stories that have happened to real commercial tenants like you. These
stories are from my clients and other tenants I have known. They are true-life stories and are
examples of successes and failures of tenants. As you read these stories, you will gain a
practical knowledge ofmany leasing situations.


You might also be astounded at the "gifts" some landlords and leasing brokers agree to give,
such as free rent or other allowances, in order to have the opportunity to sign a commercial
lease with a small commercial tenant. Imagine what they could offer for your lease!

If you like stories or you wish to have an overview of other tenants' experiences, you might first
read all those stories, one after the other, and come back later to read a different subject.

Do my strategies work?

Successfully.

Keep your eyes wide open . . . your proof will be in the pudding. Try them all and see. I can
explain all the successes but nothing will be quite as convincing to you as seeing your own
financial results!

Pull up a chair. Get comfortable. Relax. Let's talk about increasing your "Gains in Your Account"
and achieving the success you want. How much of a rent rebate do you want to accomplish
from studying my strategy? When was the last time you felt fantastic?

Landlords and Leasing Brokers

Throughout this book, I use the words "landlords and leasing brokers" to always remind you with
whom you are dealing: landlords, and leasing brokers working for landlords. They are not on
your side. Never forget that. Keep in mind that the financial goals and objectives of these two
professional negotiators are for the benefit of the building owners exclusively, not for your
benefit.

Tenant Representative, Commercial Realtor, and Real Estate Broker

Throughout this book, I use these words to show the importance of these professional
negotiators who act for the exclusive benefit of the tenants. They act for your benefit. They can
be extremely valuable to you.

Warning: Your heartbeat will increase!

One of the secrets of this book is to ASK. During all those years, many tenants told me that they
didn't have the slightest idea that they could ask for so many benefits! They didn't know what to
ask! By negotiating using the professional strategy that I used for the last thirty-three years, your
«Gains in Your Account» will be higher than you ever thought possible.

An Online Feature

To receive my newsletter, just subscribe to my website at www.commercial-lease-expert.com

Don't worry: you won't be overwhelmed. I post only once a month. And sometimes, I take a
break and don't post a single note.

100% Money Back Guarantee.

If my book, doesn't give you at least $500.00 (more than 10
times what you paid for my book) worth of free rent, bonuses, or incentives, from commercial
landlords when negotiating your lease, return it at any time, up to a full year from the date you
purchased it.

I'll promptly refund the money you paid, no questions asked.

Soon, I will add a collection of videos and podcasts to my website. www.commercial-lease-
expert.com

If you don't have the time needed to read my book:

1) first, read all those stories;
2) then listen to my audiobook while driving or in traffic commuting;
3) listen to my podcasts
4) look at my videos;

What Does This Book Assume?

I assume that you have two sharp pencils with you, because what you will learn might be worth
at least $25,000.00 in savings for you. You will see for yourself. As you read, a sense of wonder
will awaken within you.

Let me know your savings:

I want to read about you, so send me your story: www.commercial-lease-expert.com/stories-
blog

Let me know what you think about this book by emailing me:

Enjoy and . . . count your gains.
Thank you for your patronage; you are more appreciated than you think.


"You can achieve anything you want in life, if you have the courage to dream it, the intelligence
to make a realistic plan, and the will to see that plan through to the end."
Sidney A. Friedman

N.B. Disclaimer: Legal Notice.
In every state, province, and country, laws are always changing. This book does NOT take into
account all the laws of every state, province, and country. The publisher, vendor, and author of
this book make no representation regarding the outcome of the use of the book. You should not
rely on the publisher, vendor, or the author of this book for any advice. Please consult your
tenant representative.

To protect the privacy of my clients, names, places, and dates have been changed.

"Studies show telecommuting, for instance, can help businesses cut real estate costs 20% and
payroll 10%,"
Laura Fitzpatrick

"We're Getting Off the Ladder,"
Time Magazine

Chapter 1: Crisis Opens Opportunities

During an economic downturn, small and medium businesses work really hard at staying afloat.
Given that rent is their second largest expense, it's shocking to see how many commercial
tenants fail to see how that can be reduced.

How can this be?

Although a lease tends to favor the landlord, commercial leases are negotiable, and a tenant
can always ask for a rent reduction. As much as a tenant wants the property, the landlord needs
the tenant, so the power can tilt in favor of the tenant.

This book illustrates how to gain all of the advantages and benefits that commercial leases can
offer. Did you know that if your lease is already signed, you can still negotiate a rent reduction of
15%?

Did you know that your landlord's competitors may be interested in buying your lease?

There is an old joke among economists: "A recession is when a neighbor loses his job. A
depression is when you lose your job." Some of your neighbors have lost their jobs, and what
will happen to you if you don't negotiate a lower rent? The things that can keep you awake are:

1) your income will be lower;
2) your business will have to adapt to new opportunities; or
3) you could be left bankrupt at the side of the road.

You don't want to be part of the unemployment statistics! You want to join the band of
successful businesses, and you want to survive! This book is all about asking for what you want.
It demonstrates:

1) What questions you should you be asking;
2) How you should respond to landlords.

Always remember, as in all negotiations, you will win some and lose some. But at least, with this
book, you will cast your line so as to bring many fish (gains) into the boat!

Story

Once I was negotiating with the leasing broker of an important landlord. On the wall behind his
desk was a sheet of paper with rates written on it in small print. There were two rates:

1) basic rates applicable to tenant representatives; and
2) basic rates applicable for tenants who negotiate their leases without a tenant representative.

Can you guess for whom the basic rents were higher?

Rates applicable to tenant representatives were lower by $1.50 per square foot. You may ask
why rates applicable to tenant representatives are lower if landlords have to pay a brokerage
commission to your tenant representative.

Answer: Because the tenant representative knows the market and all the rental rates of your
specific city, while tenants typically are not aware of these factors. As a tenant, one specializes
in his or her business, which is not commercial rental markets. So landlords and leasing brokers
assume that you, as a tenant, do not know this secret.

Next time you negotiate your basic rent, subtract $1.50 per square foot by asking for the
landlord's basic rent and see what happens!


Because a tenant doesn't know what to ask the landlords and leasing brokers, the tenant will
sign a lease and the landlords and leasing brokers will collect more dollars. The surplus, the
leasing broker's commission, will be higher because rental rates are higher without a tenant
representative.

Who are the actors?

Small and medium businesses and commercial tenants of all kinds are running their day-to-day
businesses, sometimes working around the clock to make ends meet. They want to reach their
business goals. Since the beginning of our economic crisis, they have witnessed a dramatic
decrease in their income. They do not have the time to read fancy books or learn all the
technicalities of negotiation.

I am not an economist, and I don't even know all the differences between these depressing
words: economic downturn, recession, depression, economic crisis . . . Like most of you, I am a
small businessman and an outsider to most economic news I read on the Internet and in
newspapers or hear on TV. I am not part of any big decision-making process, and, like you, I am
affected by national economic problems.

Like the rest of the 19 million tenants and millions of professionals, when economic times are
bad, you suffer. Like all of us, you lose money when a crisis hit. Do you want to survive?

Do You Need a Guide?

For the last twenty-one years, I have been representing tenants only. During all those years, I
have developed a road map for my clients because my job is to negotiate the best equation of

a) the lowest possible rent; and
b) the highest amount of allowances for my client.

Have you ever wondered why no other book ever revealed that strategy?

In my book, I will reveal to you ALL my tips. I have set up a roadmap, to show you, step-by-step,
all the processes for the maximum rent rebate. Each step has the objective of transferring
money from the landlords and leasing brokers to you, the commercial tenant. As we go along, I
have included many spreadsheets to show you "how to add gains" from landlords and leasing

brokers to your benefit. You will add your numbers throughout these processes.

Seriously, can you do it alone?


You have the power to sign a commercial lease. You have no idea how signing a commercial
lease with you is of upmost importance for a landlord and his leasing broker! Do you know that,
without your lease, a landlord might forfeit his building to the banks?

Do you know that a landlord might gain $1,000,000.00 with your lease?

Look around you. How many office, industrial, and retail buildings are standing? What if you
hold the destiny of one landlord in your hand!

How much are you worth?

About Your Power!

Negotiating your lease is more about understanding people and their needs. Negotiating your
lease is also about organizing your future gains before meeting your landlord, knowing the
arguments of the landlord in advance, and understanding the hidden needs and goals of
landlords and leasing brokers. But tenants toss aside their lease to return as fast as possible to
"business as usual" because they don't know their hidden power. They don't know what to ask.

Often, the jokes at landlords' and leasing brokers' Christmas parties are about their "best
tenant," the one who signed the fastest or the one who let thousand of dollars drop into the
landlord's pocket! Landlords all around your city are flexing their financial muscle and working
against your interests. But this philosophy may belong to the past.

Landlords and their leasing brokers are very intelligent and astute business people. They have

been defining their commercial leases and their business for over a century. The landlords'
business is to manage their buildings as profitably as possible. They are very good at
extrapolating the maximum return from your lease. They are excellent at increasing the value of
their building so they can refinance their building and pocket a huge amount of money with your
lease.

How do you compete with this immense knowledge?

Are you thinking about starting your own business? Were you laid off from your job? Have you
been through some personal life-changing event and are ready to take off in a new direction?
But because the economy took a nosedive for the worse, you are afraid or reluctant to jump on
the bandwagon. Maybe this is an excellent time to grab new opportunities! Maybe this is the
time to be a contrarian!

For any or all of these reasons, isn't NOW the time to turn your dream into reality? Good and
great businesses are made by folks like you. More individuals than ever before will make a living
by operating their own businesses. In fact, I doubt that any economic crisis is noble. But one
thing I know for sure: people are noble. You deserve it.