Lease renewals – Why timing is everything!

Just because there’s an option in your lease to roll over, is it really the best option for your business?

The question “Should I stay or should I go?” is one that should be considered carefully, even as early as mid-way through your lease. Commercial leasing is undoubtedly a more lengthy and complicated process than residential leasing, therefore more time should be given to sorting out possibilities, from lease renewal, to searching for a new premises altogether. 

Start Early

If you are a company with 20-200 employees and you are twelve months out from your lease renewal, it’s time to start thinking. Some workplaces mistakenly believe that nine to twelve months left on their lease will allow them enough time to determine the right way forward and to act. The truth is, the more time you leave yourself, the better off your company will be in the long run, both in the case of staying and going.

During our recommended time frame, you should be able to:

Negotiate.
In the negotiation process, time needs to be on your side so you can create leverage.
The less time you leave for negotiation, the more the deal will fall in your landlord’s favour, as they will know that your options for finding an alternative so close to the renewal date are limited. 

Look At The Market.
Have a browse and allow BRM Real Estate to inform you about rentals and incentives for buildings in the area (and other areas). Sound knowledge of the market will provide you with even greater leverage and will prepare you for your next step as you will know your options.

Evaluate Your Current Building/Landlord’s Performance.
Is it fulfilling the needs of your company? Is it in line with your company’s values? Is there room for improvement?

Know Where Your Company Is Heading.
Understand your company’s direction and any upcoming changes it may be facing. Make sure that your lease objectives are aligned with these changes.

This article was originally published by BRM Projects

BRM Projects is a boutique firm providing end to end management and delivery of commercial property and workplace solutions. Our team of experts possesses experience and skills that transfer across all areas of commercial property, allowing us to partner with commercial tenants throughout the lifespan of their commercial lease. We find, create and deliver workspaces that work well, providing property advice and strategy, workplace design and project management to commercial tenants Australia wide.

If you would to find out more about BRM projects, click here

Gladwin Legal are experts in property law and can assist in reviewing or negotiating your lease or renewal .  If you would like to know how we can help, please do not hesitate to contact us at rosalyn@gladwinlegal.com.au or give us a call on 1300 033 934 for a no-obligation quote.