August 4, 2021
Before your company’s office lease expires, ask yourself, “Should we renew our lease?”
STOP! Don’t do anything yet. Did you know that on average, 75% of tenants will renew their lease? However, if you are unhappy with your current space or your current lease terms, hire a tenant rep to guide you through the renewal process.
Here are five beneficial tips to follow in a lease renewal process:
1. Make sure you hire a tenant broker. They are specialists and can help you understand the market and negotiate terms, whether it is a new space or renewing your current space.
2. Get educated on market conditions. Understanding the overall market environment is crucial in being able to make the right decision for your business. Rental rates, construction costs, permitting timelines, and move costs will all be factors to consider in the process.
3. Begin the process early. It takes time to search the marketplace, find an acceptable alternative, allow for potential permitting and upfit time, and then relocate should the renewal of the current space not be an option.
4. Evaluate other options in the marketplace. Introducing new competition to your landlord will help you gain concessions in a renewal lease and allows you the option to relocate putting you in the driver seat.
5. Remember you are making a business decision. Leave emotion out of the process. Just because your business has been in the same building for the last twenty years does not mean the landlord will give you a better lease than any other tenant!