Need to Renew Your Office Lease? Here Are a Few Tips
April 17, 18
You're coming to the end of your lease and you're considering renewing. Are you fully prepared to do so?
There are plenty of steps involved in lease renewal that you might not be aware of. Before you negotiate anything, you will want to be as informed as you can.
We've put together this list of tips you should know before you pursue renewing your lease.
Learn If You Have The Right To Lease Renewal
Before you begin the lease renewal process, you will want to check your lease to ensure that you have the right to renewal. Not all commercial leases favor the tenant, so you may not have as many rights in your agreement as you might think.
On your lease, you should be able to find a section that reads "Option to Extend" or "Right to Renew." Under this section, you should find a description of your rights of renewal as a tenant.
Be sure to check for a timeline as well. It is possible that you only have the right to renewal within a certain timeframe. And if you are hoping to renew, you will need to do so within that timeframe.
Start Negotiations Early
Once you know your rights, you'll want to start negotiating your lease renewal fairly early.
You want the most time possible to work out the best deal. The nature of negotiation is a lot of back-and-forth, so to ensure a timely completion of your renewal, always think ahead.
Should you be unable to renew, you will also want enough time to look for other options.
Watch The Market
Commercial real estate is always changing with the economy. These changes can and should influence your decision to renew, when and if you decide to do that.
You should pay attention to things like rent prices in the area to negotiate lower if you are able, as well as cheaper options that you can be used as bargaining chips.
The space you occupy can greatly affect your productivity. You should be regularly reevaluating how productive your business is in your space and consider if changes could be beneficial to you.
It may be that reducing or enlarging the amount of space you are renting could improve your productivity. This is very important to consider when looking at renegotiating your lease.
Research Other Options
You should always be prepared for a better opportunity to come along the way. Researching other options can be helpful for a couple of reasons:
- You can use better options to negotiate for better terms on your current lease
- You may find a space you like better than your current one
You'll just want to make sure that your research is thorough. Know all of the costs and the benefits of a space before you commit to it or use it in a negotiation.
We hope that these tips have been helpful for you as you consider renewing your lease.
Contact us with any questions you might have!