For this episode of Tuesday Tips, we were joined by Mary Dillon, Associate Director of Real Estate Management at Grow Schools, to discuss lease negotiation strategies that help schools maintain financial stability.
Here are this session’s top 3 tips:
- Get a firm grip on every lease term and obligation now. Know exactly what you’re responsible for versus what the landlord handles. Track enrollment closely and maximize your current space with multi-purpose rooms and flexible scheduling. Dig into operating expense history—CAM charges, taxes, and insurance often create the biggest budget hits. Plan years ahead for major repairs to avoid budget wrecks when costs hit.
- Don’t focus only on rent during negotiations. Evaluate building condition—if landlords want higher rates without investing in improvements, negotiate capital items like playground upgrades or HVAC assistance. Consider other valuable levers: term length, renewal clarity, caps on operating expense increases, early termination options, and rent-free periods. These can be just as valuable as reducing base rent.
- Start renewal conversations 18-24 months early. Time is your biggest asset in lease negotiations. Early discussions prevent both parties from getting backed into corners, allow time to research market rates, and enable honest assessment of budget, space needs, enrollment trends, and financial limits. Never too early to start, but it can definitely be too late.
Watch the Whole Conversation Here
