Upcoming lease expiries are challenging, especially if you’re not sure which conditions to push back on, how to get the best deal possible, and whether your business is being treated fairly by your landlord. And if you’re new to the commercial property hunt, the struggle can be even greater.

Here are our top tips for a successful leasing transaction:

1)  Plan your timeline

Plan well ahead to stay in control. If a property owner knows you’re under time pressure, you’ll essentially be backed into a corner with less flexibility to negotiate your ideal terms and to identify the best property for your business.

There are also more than 50 points you can negotiate in your lease agreement. So, you’ll need plenty of time to think these through, conduct your workplace analysis and plan your winning strategy.

Securing your ideal property and terms typically takes between 9 and 18 months, depending on your business. As a rule of thumb, whether you’re entering into a new agreement or renewing your existing lease, we recommend you start the process at least 12 months in advance to yield the best results.

Keep in mind that the length of the project will depend on the size of the property, complexity of the agreement, plus any fit-out requirements or necessary approvals.

2) Assemble your team

Getting the right mix of people on the job is essential. And it’s beneficial to have all team members on board from the start, so everyone can contribute effectively.

Internal team members may include:

• Executive team
• Internal project manager
• Office manager
• Staff representatives.

External experts may include:

• Tenant rep or leasing agents
• Solicitor
• Fit-out team (e.g. designer, project manager, builder)

 The team you assemble should reflect the goals you have for your next lease.

3) Develop your property strategy

Before deciding on a property, ask yourself: How will this business location meet both the current and future needs of my business?‍

To make this decision, consider the following:

1. Business goals - Broadly speaking, where do you see your business right now? And do you see it growing or contracting in the future?
2. ‍Space audit - If you’re currently leasing, how are you using your existing space? Is it meeting your business needs? Consider how much space you need to deliver the layout, services and amenities that are important to your staff and also their ideal work location.
3. Evolving work styles - How will your team utilise the space? Has there been a shift towards more flexible work arrangements or, are you trying to encourage a return to office? More permanent WFH agreements may allow for a reduction in office space. On the flip side, if you’re looking to entice your staff back to the office, consider whether the prospective space is conducive to the experience you’re trying to create.‍
4. New technologies - Has your business introduced new technologies which impact your real estate requirements?‍
5. Strategic renewal - Could you reconfigure your existing space to allow for planned growth or enhanced productivity?‍
6. Budget - How much is your business able to pay for the right location and physical requirements?‍
7. Other limitations - Are there any other limiting factors affecting your choice of business premises?

And here’s the clincher…

After careful consideration of your needs (whether you decide to stay or go) you should conduct a full market search to secure the best outcome.

4) Conduct a full market search

For both new and existing lease arrangements, market research is essential. Comprehensive insights into the market give you valuable bargaining power when negotiating your lease terms.

It’s a clever strategy to create competitive tension between your current and prospective landlords.  

5) Maximise your leverage

Now, how can you use this market leverage to benefit your business?

Firstly, analyse the costs your landlord would have if you moved on. This will include potential downtime, transaction costs like construction and tenant fit-out, rent concessions and commissions.  

Next, submit proposals to both your current landlord and the owners of potential relocation sites. Your proposals should include the breakeven calculations and market comparable transactions.

Hot tip:  playing one landlord’s offer against another’s, can help land you a particularly juicy deal.

Remember

DON’T make your final decision until you’ve negotiated the best deal for each possible location.

DO keep a solid paper trail of all your negotiations.

Need support getting the job done?

Get in touch with Tenant CS. As your professional tenant rep, we support your business throughout your leasing project, and manage your relevant timeline to make the process stress-free.  

We’ll secure a great deal at either your existing space or at a new location by negotiating on competitive properties (both on and off market) and tapping into landlord drivers.

Get commercial lease tips from the experts. We know exactly what to ask for and how hard to push during the negotiation process.