We are wanting to consider remodeling office space we lease. We have been here nearly 10 years and love the flexibility of use we get out of the space, but would like to upgrade to a bit "luxury" feel. We have just under 1,200 square feet and I would like to replace carpet, paint walls, and maybe do something to the ceiling (to cover up cheap foam tiles).

How do I go about structuring this financially? I don't expect the owner to give me all these things I want - we're in a somewhat industrial area and our business is the only one in the office that sees clients in-office regularly. So I have pretty much been planning to pay them myself. But if I do all these upgrades myself for a place I rent, what should I ask for in return? Lock in the current pricing for x amount of years? An option contract if he ever sells?

Just looking for any guidance, as I've never gone through something like this before (I bought out part of the business I started working for after college, so I have never gone through tenant negotiations before and am having to teach myself how to be a business owner).

I have explored the local market for moving to another location, but nothing fits our cosmetic desires in a price point we want to pay - plus this location has other advantages/flexibility I don't expect others to have. Plus the hassle of moving...

Every time we have 'refreshed' or 'renovated our space it has been as part of an improvement allowance that the building owner offers as part of a lease renewal or extension. Basically owner agrees to make XX thousand in improvements provided we agree to lease the space for Y more years at $Z / SF

Alternative we could pay directly for the improvements, but even then our owner only allows 2-3 contractors in the building and the pricing is always better (but still terrible) if priced through the lease renewal/modification.

If your lease is expiring in the relatively near future, and you want to renew, you should work some type of concession from your landlord. Whether it be free rent or a tenant improvement allowance.

If you are nearing lease expiry, call up a tenant rep. They are experts at structuring these and they're commission should be paid by the landlord.

My lease is up. They bought the building from prior owner about the time it expired earlier this year. They asked us to sign a new lease and I told him I wanted to consider some improvements. We didn't go into detail.

So far I haven't signed the new lease - just been giving him checks every month and haven't heard anything from him...

I would guess your rent is very low and I wouldn't expect much if any improvement allowance from the LL unless you are committing to a meaningful term length. The cost to renovate a space that small will greatly outpace the improvement allowance on a $/sf basis. You should definitely have the conversation though.