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, 70% 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 negotiate better terms, whether it is a new space or renewing your current space.
2. 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.
3. Begin the process early. It takes time to search the marketplace, find an acceptable alternative, and then relocate should the renewal of the current space fall through.
4. Let the landlord make the first offer and then create a counteroffer. You want to know the landlord’s initial proposal first. Once you know the offer, then your tenant broker can create a favorable counteroffer in hopes of coming to a positive agreement somewhere in the middle.
5. Show no emotion. 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 company. Stay strong!
Some other easy tips are to keep only the executive personnel in the loop about negotiating results and do not talk directly to the landlord or the landlord’s representatives about the lease renewal. If necessary, politely direct the landlord to talk to your tenant broker.
By hiring a tenant representative, your company will save time, money, and possible headache in lease negotiations, whether it is on a lease renewal or an entirely new space.