Negotiating a renewal of your office lease can seem like a dicey situation. By the very expression of interest in renewing your lease, the landlord knows that the premises are meeting your needs and that moving your business is the last thing you want to do. If you are paying market rents presently and if the landlord offers a market rate for your renewal, it can indeed be an easy decision and one that is easy to document.
But what if you are paying a little over market, economic conditions have changed – just consider the current climate, or you want or need a concession to justify staying put? What do you do then? A simple rephrasing of the question reveals the answer. How do you get the same enticing deal the landlord is offering new tenants coming to the building?
The key is disavowing the landlord of the notion that you are a captive audience. They need to realize that you have a choice to stay or leave and that you are willing to exercise that choice. This can be accomplished with one simple act on your part: broach the subject with the landlord 9-12 months before your expiration date. A good tenant rep broker can push the reset button on the landlord’s expectations and do the market research to back it up. Now you have turned the tables and have the landlord asking themselves a question: do we want to keep this tenant or lose them? This is a situation where it is very wise to have an intermediary act on your behalf and shield your true intentions to stay but get the best terms possible.
And hey, what’s the harm in taking a look into market conditions and maybe even touring a few buildings to get some fresh perspective on what is out there? You might even garner some ideas of upgrades that would make your office space more enticing and attractive to your employees.
Be smart -- get a head start.