If you’re a business owner, you should know exactly when your lease expires. But if you’re like many business owners, you have only the most general idea of that date. Here’s the catch – if you have even the inkling of an idea to relocate or expand when your current lease ends, you would be wise to get the ball rolling up to even 24 months early.
Leasing Fewer than 15,000 SF?
In that case, 12 months is usually enough time to begin thinking strategically. You’ll be able to assess and analyze your current location and lease, which will help you make decisions about what you might need in a future property.
Large Corporte Identity or Portfolio of Leases?
The wisest course of action is to allow plenty of time to carefully consider all your options. From renewing to relocating to closing down a part of the operation, these factors are much easier over the long term if you’ve had time to think them through.
And here’s a tip, no matter how big your business. Being upfront with your landlord about the fact that you’re taking time to see what’s out there can actually create much-needed leverage. It’s often the case than renewal provisions come with higher rental rates than what the rest of the market offers. A cooperative landlord will make renewal a better option than relocation, and you can encourage this cooperation by being plain about the fact that you’re shopping.
Sometimes, a landlord may be willing to offer concessions if a tenant will accept an early extension, another reason to begin thinking about expiring leases sooner rather than later.
When Have You Missed an Opportunity?
If the sudden appearance of renewal paperwork in the mail is the only reason you’re thinking about your expiring lease, you’re late to the game – and it could cost you. Don’t miss the opportunity to effectively evaluate your market competition. Consulting with an experienced agent for your next lease can make this process easy. It’s the best way to ensure all the right questions are being asked at all the right times.