Four of us met with the landlord of the space we've been looking at. The place right next to where we were looking is just now opening up. It's about 500 square feet smaller but has most of the work done.
We all had dinner afterward and agreed that I will call him tomorrow and ask for $200 less per month for the smaller space than he is asking, one month free and a one-year lease beginning June 1.
I'll post the result when I found out his response.