|July 11, 2018||No Comments|
The Art of the Lease Renewal
Every office tenant at some point is faced with a decision of whether to renew their lease or relocate to a new building. Depending on market conditions, in most scenarios the Landlord is inherently dealing from a position of strength. Building owners are well aware of the time, cost and effort required to relocate your business. If you’re waiting until the last minute to make the critical decision about renewing, and on what terms, you’re clearly giving the Landlord a competitive advantage.
Here are four posts detailing the concepts for leveling the playing field and an effective lease renewal.
Renewing your Office Lease
Building owners recognize corporate office tenants need a compelling reason to relocate their office facilities and opt to renew their lease approximately 70% of the time. Lease renewals are not as simple as they may appear and formulating an effective renewal strategy is a key component of the overall leasing process.
Negotiating the Renewal Option
Most commercial office leases are long-term in nature, typically 5, 7 or 10 years in length, but also typically contain provisions for extending the lease beyond the initial term. A renewal clause in a real estate lease allows a tenant to decide whether or not to extend the lease once the initial lease term expires. The key concept to remember is that the renewal option is a benefit to the Tenant.
5 Reasons Your Landlord Doesn’t Think You Are Serious About Moving
The reality is in most scenarios, Landlords feel they have a competitive advantage in renewing an existing tenant versus the Landlord that is trying to entice a tenant to relocate. This perception is to some degree accurate as tenants typically need some compelling reason to move.
Why the landlord does not think you will move
Ten Negotiation Tips for Tenants when Renewing Your Office Lease
When your office lease comes up for renewal the Landlord can have an inherent advantage if you do not go about the process properly. Here are 10 tips that will increase the probability of a better renewal Transaction.
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