A commercial lease expiry can creep up on you and be costly without the proper preparation and advice. So, if you have an impending expiry of lease, follow these four tips to 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 because:
It gives you leverage
Impending deadlines can be used against unprepared tenants because of the urgency they create. Landlords also tend to become more flexible as negotiations progress. So, entering negotiations with plenty of time up your sleeve gives you the leverage you need to negotiate a better deal and means you're not entering negotiations with your back against the wall.
It allows breathing space
Timing is also crucial to give you the breathing space you need to conduct your workplace strategy and understand your property requirements before sourcing property options or renegotiating with your landlord. It also gives you the ability to engage in a stay vs. go process to make well informed decisions and create a level of ‘market tension’.
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
· Recent rent statements
· Property condition report
3. Analyse your situation and remain opportunistic
Should you stay or should you go? The answer is not black and white. Think carefully about whether it would be better to renegotiate your lease or relocate to a new space. These days, unless you already have a tenant-friendly lease, we often advise our commercial clients not to exercise their options and instead go to an open market.
4. Appoint a tenant advisor
Don’t need the hassle, have the right knowledge or time to spare? Assign a commercial tenant advisor to do the legwork. At NANDAKA REAL ASSSET ADVISORY, we represent commercial tenants. And this means that the market information we rely on in negotiations focuses on what's important to tenants. For example, we analyse the rents, availability and vacancy rates between different buildings and assess the quality of buildings. Our years of hands-on experience in strategic negations with landlords and commercial office markets will speed up the process and get the most realistic commercials.(Upcoming Commercial Lease Expiry)
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