Is it that time of year, again?
Office lease renewal periods are a great time to reconsider your current terms as it provides tenants with the opportunity to think about some important points. In any commercial deal, lease renewals should be handled with winning strategies.
If you’re ready to renew your office lease, make sure to consider these 4 points first:
Always Read Between the Lines
Tenants should never get too comfortable. Carefully reviewing the exact terms of each 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 think you can skim through the paperwork at renewal time.
First things first, the most basic rule should be to get clear on the details. It’s a good idea to assume that each lease is completely different – helping you to pay closer attention.
Always look out for rent increases, coverage of operational costs, tax rates, and maintenance. Consider how these slight adjustments will impact the deal as a whole. If something seems unclear, don’t hesitate to request clarification from your landlord.
Re-Structure Your Finances
Before resigning that lease, it’s a good idea to take a fresh look at your finances. To make a wise decision, tenants need to have a full understanding of how the lease will affect your business moving forward.
Creating a current financial wellness plan will enable tenants to assess both the benefits and drawbacks that come along with resigning 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 Other Market Options
It’s never a bad idea to explore the current real estate market. Not only will this provide key insights into the deal, but it will also help improve your negotiation skills. It shows your current landlord that you’re serious about relocating.
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 stronger.
Knowledge truly is power – especially when it comes to commercial real estate. Don’t neglect to perform a market analysis once the renewal period rolls around.
Negotiation is Everything
As stated above, 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 resigning, improve your company’s position as a tenant, and improving the contract terms.
When it’s time to resign, make sure you’re taking proactive steps to achieve your ideal lease terms.
For more commercial real estate tips, check out our blog.