If you lease an industrial or commercial space, you should know when your lease is set to expire. But if you’re like most business owners, you likely have only a general idea. That’s a problem if you have even the vaguest of plans to relocate or expand when renewal rolls around. This is why you should know when your industrial lease expires.
A General Timeline
In general, making plans to move or expand should start up to two years in advance. You may be able to get away with 12 months if your lease is for 15,000 square feet or fewer. But what you’re giving yourself with this much time is room for strategic thinking, which includes assessment and analysis of your current lease and location and what you might like instead.
Large corporate entities or those maintaining a portfolio of leases need even more time to properly evaluate next steps. Good decisions are made when considerations about renewals, relocations, even shuttering certain elements of an operation, are all made thoughtfully with due care.
Leveraging Your Current Situation
We’ve written before about the importance of being tight-lipped about your business plans with both the landlord and any property managers. But in this instance, being upfront about the fact that you’re taking time to see what’s out there tends to create create excellent leverage with your current landlord. It’s typical that renewal provisions come with higher rental rates than what the rest of the market offers. A savvy landlord will make renewal a better option than relocating. Being direct about your plans tends to encourage cooperation.
There’s another reason to be candid about the fact that you’re already shopping for another location. Landlords may be willing to offer concessions if a tenant accepts an early extension. In this way, both you and the landlord are getting something you want.
Late to the Game
Here’s the takeaway – if you’re thinking about your expiring lease only because the renewal paperwork just arrived you’ve deprived yourself the opportunity to evaluate your market competition. It’s likely that will cost you. Instead, find an experience agent now for an idea of what you have and what you might consider. At worst, you’ll have a professional on hand to help you manage your lease renewal, which is always a good idea. He or she will also ensure that all the right questions are being asked at the right times. If you’re here in northern Nevada, Miller Industrial Properties can help. Contact us today.