New financial year. New priorities. Same lease?

As teams review budgets and plans for the financial year ahead, it’s worth checking whether your office lease still supports your priorities. After all, your rent is the second highest operating cost after salaries.

The space that worked when you first signed may not be right for how your business operates now. And if you wait until renewal is urgent, you may have fewer options and less leverage to work with (i.e. limiting your opportunities to save on rent).

A lease review doesn’t have to be stressful and high-stakes either. It simply helps you stay organised and understand whether your current space, costs, and terms still support where your business is heading.

The earlier you review, the more options you have.

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What should your lease review include?

A good lease review looks beyond the headline rent.

It should consider the full picture, including:

Rent and incentives

Headline rent is only one part of the deal. Incentives, annual increases, and effective rent all influence what your lease is really costing the business.

Before accepting a renewal offer or comparing relocation options, it’s worth understanding how your current terms stack up against the market (which currently weighs heavily in the tenant’s favour).

Outgoings

Outgoings can make a meaningful difference to your total occupancy costs.

Tenants should understand and continually evaluate what they’re paying for and how those costs are calculated.

Key dates and renewal options

Lease expiry dates, option dates, and notice periods matter.

Missing a key date can significantly reduce your options. Reviewing early can help you plan properly for any moves, protect your position, and avoid rushed decisions.

Even if you have an option to renew (which isn’t always the strongest commercial move), it’s still worth checking the market before committing.

Space and headcount

Does your office still suit the way your team actually works?

If your headcount, hybrid work patterns or workplace needs have changed, your space requirements may have changed too.

Too much space, not enough space, or simply the wrong type of environment for how your business now operates? Right-sizing your office footprint may be the move this financial year.

Make good obligations

Make good obligations can have a significant impact on the true cost of staying, moving or exiting a lease. It’s worth revisiting what your lease requires at the end of term, what costs may be involved, and whether there is room to negotiate before decisions become urgent.

Flexibility

A strong lease should support business change, not hold it back.

It’s worth reviewing whether your lease gives you enough room to grow, reduce space, sublease, assign or adapt if your needs change during the term.

Client and staff experience

Your office is not just a cost. It supports culture, collaboration, client confidence, brand perception and staff experience.

The question is whether your current premises are still delivering that value at the right cost.

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Signs your lease may no longer be working

It may be time to review your commercial office lease in depth if:

• team size has changed since signing
• the office is regularly underused
• rent or outgoings have increased
• your lease expiry or option date is within the next 12–24 months
• workplace strategy has changed
• the fitout is dated and no longer supports how your team actually works
• your landlord has approached you about renewing
• you’re unsure whether your current terms are competitive
• you’re staying put because it feels easier, not because the lease terms are right

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Why market testing matters, even if you want to stay

Market testing is incredibly valuable whether you’re renewing or relocating.

It helps tenants understand what else is available, what other landlords are offering, how current rents and incentives compare, and what leverage may exist in a renewal negotiation or relocation deal.

Staying put may still be the best decision. But it should be an informed one.

When tenants understand their alternatives, their negotiation position is far stronger.

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Is your lease ready for the year ahead?

A commercial office lease review is not about creating change for the sake of it.

It’s about making sure one of your largest business costs still supports your people, your budget and your future plans.

Before you commit to another year of occupancy costs, it’s worth asking:

Is our lease still working for where the business is heading?

Tenant CS can help you sense-check your lease position and identify opportunities to reduce cost, improve flexibility or create leverage before your next major lease decision.