Office lease renewal periods are a great time to evaluate your current lease terms as it provides tenants with the opportunity to think about some important points.
In any commercial transaction, lease renewals should be handled with winning strategies. Here is our list of the top 4 things to consider when its time to renew.
Always Read Every Page
Carefully reviewing the exact terms of the lease will help office tenants avoid big problems down the line. Even if you’ve been in the same office space for years, don’t skim through the paperwork at renewal time. One of the most essential rules is to be clear on the details.
Regardless of how long you’ve occupied the space, it’s a good idea to presume that changes in terms will be coming. Always look out for rent increases, coverage of operational costs, tax rates, and maintenance. Consider how these slight adjustments will impact the lease as a whole. If something seems unclear, don’t hesitate to request clarification from your landlord or leasing agent.
Restructure Your Finances
Before re-signing any lease, it’s a good idea to take a fresh look at your business’s finances in order to make the most informed decision. Even a slight change in terms can have an impact on your business moving forward.
Creating a current financial wellness plan will enable tenants to assess both the benefits and drawbacks that come along with re-signing an office lease. Consider the outcomes of remaining in the same place versus relocating to a new office to make sure it’s your business’s best move.
Explore Your Market Options
It’s always a good thing to follow the real estate market. Not only will this provide key insights into the lease terms, but it will also help you negotiate for a mutually beneficial transaction. It also shows your current landlord that you’re serious about making a wise and well-informed decision.
Once you’ve seen what kinds of properties are currently available, price points for comparable properties, and commonly-featured amenities; your position as a tenant gets even stronger.
If this seems a bit overwhelming, contact a local expert who can help explain the steps and give you the most accurate data.
Negotiate, Negotiate, Negotiate!
A tenant’s ability to negotiate with their landlords is essential during lease renewals. Strong negotiation skills are needed for office lease renewal strategies since they secure the tenant’s position.
When beginning to negotiate lease terms with your landlord, make sure you have a game-plan in mind. Inciting the conversation with key elements helps in building credibility and taking a dominant position in negotiations.
One of the best ways that business owners can optimize their company’s financial position is by strategically navigating through the lease renewal period. Approaching office lease renewals with tact will help lower the risks of re-signing, improve your company’s position as a tenant, and improving the overall contract terms.
When it’s time to re-sign, make sure you’re taking proactive steps to achieve your ideal lease terms.
Knowledge truly is power – especially when it comes to commercial real estate. Contact an expert who will help you get the most from your office lease!