Got an upcoming commercial lease expiry? Here’s why time is your friend (+ VIDEO)
A common mistake tenants make with an upcoming commercial lease expiry is not starting the process early enough.
What do we mean by this?
Over and over again, tenants do not leave themselves enough time to explore suitable market alternatives or find comparable market options to use as leverage in negotiations with their current landlord.
How much time should you leave for an upcoming commercial lease expiry?
Calculating the amount of time that you’ll need to secure a great space and deal is not an exact science. It comes down to the size of your business, your internal objectives and projected future growth.
At Tenant CS, we advise our clients to start preparing as early as possible. As a rule of thumb, when it comes to your commercial lease expiry, leave at least one year to explore the market and to decide whether it’s best to stay put or relocate.
We encourage larger occupiers to start the process at least two years before lease expiry. This is particularly true for mid-to-large-sized global companies where approval processes can be lengthy.
Why is time so valuable?
The importance of leaving yourself enough time to tackle the office leasing process is twofold. Firstly, if you wait until the last minute to find a new commercial space, you may find it hard to source comparable properties that match all your requirements, especially if the market is tight. Your landlord also gains the upper hand because they are aware that you have a deadline and a shortage of options.
As a tenant, time is critical to ensuring that you maintain your advantage in negotiations. And, as time diminishes, so too does your leverage to secure the best deal for your company – time is your friend, and it really does pay to start the process early.
Is having time up your sleeve still valuable in a Covid market?
Pre–COVID, agents and landlords were always pressuring tenants to make quick decisions. But in the current market, where things are likely to get worse, tenants are in the driving seat.
There are plenty of great market options out there right now. So, if you don’t get the terms you are looking for, don’t be afraid to say no and walk away. If you’ve left yourself enough time, there’s sure to be another suitable option out there. In any case, in today’s market, Landlords will go to lengths to retain or secure commercial tenants, so they may come around to your terms.
Psst… In a post- COVID market, here’s what we also want tenants to know.
Don’t have the time or expertise?
Tenant CS is a tenant representation company that acts exclusively for tenants across real estate projects. We are expert negotiators and have extensive experience in identifying real estate solutions for different businesses.
Tenant CS takes the hassle out of the project and represents your best interests every step of the way. Get in touch today!