Many business owners have a general idea of when their lease is up. But if you’re planning to relocate or expand when your lease expires, there are a multitude of benefits to start the process even up to 24 months in advance.
Smaller tenants – those leasing up to 15,000 square feet or so – tend to need around 12 months to truly think strategically about next steps. This gives a company time to begin assessing and analyzing their current location and lease, and making decisions about what they want in a future property.
The large corporate entity and the client with a portfolio of leases will need even more time to properly evaluate the next move. This gives them time to consider options – renew, relocate, close down a portion of the operation? The earlier these considerations begin, the easier it is to think long term.
Taking time to see what’s out there – and making no secret about it – can create much-needed leverage with your current landlord. Very often, renewal provisions come with higher rental rates than what the rest of the market offers. But a cooperative landlord can make renewal – rather than relocation – the best option.
Landlords may be willing to offer concessions if a tenant will accept an early extension – another reason to begin considering expiring leases sooner rather than later.
Don’t make the mistake of many. If you start thinking about your lease expiring because you’re getting renewal paperwork in the mail, you’ve missed an opportunity to effectively evaluate your market competition – and that can cost you.
Consulting with an experienced agent for your next lease can make this process easy. Leave it to him to ask the right questions that will keep you on track.
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