Commercial lease expiry? Here’s what to do next …
A commercial lease expiry is one of those things that can creep up on you and can be costly without the right preparation and advice. So if you have an upcoming lease expiry, follow these four tips to help you get the best results.
1. Start early
This is the most valuable piece of advice we can give our clients.
Timing is an essential part of any renegotiation or relocation project. So, consider your options early in the piece.
A lease agreement usually has a notice period of between 6-to-12 months. The closer you get to your expiry date, the less likely you are to negotiate effectively or find the perfect space. (Particularly in the Sydney market where supply and vacancy rates are falling.)
2. Be prepared
If you’re looking to renegotiate your existing lease, plan well in advance and gather all the relevant information including your:
- lease contract
- annexures (if applicable)
- recent rent statements
- property condition report
And, if you’re relocating your office, secure a space before terminating your agreement. It’s risky to do it the other way around.
3. Analyse your situation
Think carefully about whether it would be better, in the long run, to renegotiate your lease or to relocate to a new space. To make the right decision for your company, you’ll need to research the market and consider how your business plans impact current and future space requirements.
Remember, no building is the same – rent, vacancy rates and incentives will vary, depending on the building, location and the landlord. So, do your research.
4. Appoint a tenant representative
Don’t need the hassle or have the time to spare? Assign a tenant representative to do all the legwork.
At Tenant CS, we’re across the latest trends and developments in the commercial real estate market. We’re able to filter information and provide comparisons and offer years of day-to-day experience in strategic negations with landlords and agents. We always listen to challenges faced by tenants to develop a tailored strategy to suit your needs when it comes to your commercial lease expiry. So, get in touch with one of our team members today!