14 Aug How To Save Money When Re-Signing Your Office Lease
For most businesses, the primary office space is a hub, home base and vital part of daily operations. However, leasing an office can be a company’s largest business expense. So, when it comes to re-signing your office lease it is important to be prepared. The following 5 tips will not only help you when re-signing your office lease but allow you to do so knowledgeably and preparedly.
#1. Ensure You Have The Right To Renew
Unlike residential leases; which normally favor the tenant for lease renewals — many commercial leases do not require landlords to renew. Be sure to double check your lease and see if there is an option to extend or right for renewal. If you do have the right to renew, see if there is a notice period necessary. Many office leases have a renewal period anywhere from 3-12 months.
#2. Research and Understand Market Conditions
Staying up to date on the current market and its conditions can help you make an informed decision on re-signing your lease. It can also give you an advantage when it comes to negotiations, and act as an incentive for your landlord to give you a more competitive rate. If you are not working with a broker you can turn to research-based companies for predictions or statistics.
#3. Evaluate Your Current Space
Be sure to assess your current office space to ensure you are getting all you need prior to expressing interest in re-signing. Is there anything you need to improve? Is the space lacking at all? It is important as technology advances, your location has the optimal tech-based infrastructure and appropriate amenities. Sometimes, by re-signing you will not be able to change or remove existing lease clauses which can hinder you as a tenant. It may be more beneficial to work out a new lease than engaging in an option to renew.
#4. Review Termination Options
Make sure you review your lease for any specifics regarding termination options. This can be pivotal in negotiating your lease. Often times, you can get a better deal with a long-term lease, however, you want to be certain you are educated about your options if you do need to terminate for any reason. Especially for growing companies, changes can be imminent; so be sure you know what to expect if the need to terminate arises.
#5. Think About Hiring a Broker
If you do not feel comfortable with negotiating, a great option would be working with a professional broker. Brokers carry years of valuable experience and priceless knowledge. Their ability to aid negotiations with their awareness of the market and your specific needs as their client can save you money. Finding a broker that will take time to fight for what you need will help your business thrive in the long run. If you’re nearing the end of your lease or looking for a new office space, I’d love to answer any questions you may have. Feel free to contact me directly – firstname.lastname@example.org or 225-659-8654.
Overall, renewing your office lease is an important step in the lifespan of any business owner. It is important to carefully examine all options before deciding what to do — and when in doubt, turn to a professional for help.