At the start of a new year, it’s natural to consider your business’ future. What will you accomplish in the next year – or even in the next five years? What’s more, will that forecast impact your current office space?
Here are five reasons a renewal may be the way to go as your business moves forward:
Where will you grow?
If your business needs more employees to handle more work, then additional square footage may be in your company’s forecast. However, if your business is stable and has had little growth, or if telecommuting is a viable option, the space you’re in will probably continue to suit your needs and minimize your overhead costs.
Do you have the money to move?
When you consider the fact that a relocation involves not only the costs of the physical move, but also IT adjustments, address updates, office furniture and more, a new office space brings a host of new expenses. Even if you consider potential lease savings, a new office space could cost you more in the short term. If your current situation will work for the next few years and your relationship with the landlord is positive, staying put may make more sense – and keep more dollars in your pocket.
Love your location?
If you have a strong relationship with your landlord, benefit from the businesses around you and have access to a fair number of amenities, stay put. Why mess with something that already works for you, your staff and your business? Keep everyone happy and renew your lease.
The market matters.
If you’re in a tightening market, there may not be any other viable options for an office space that suits your business needs. In these cases, be sure to hire a seasoned real estate advisor who can help you negotiate the best possible terms for a renewal.
Leverage your lease.
Landlords cannot profit from vacant space, and will often work with tenants to secure longer leases. If you can use this fact to your advantage and secure reduced rent, updates or other concessions, then renewal makes sense for your business.
In all cases, whether you stay with your current office space or move to another, it’s important to note that your broker should negotiate your lease renewal. When you work with a professional from Intelica Commercial Real Estate, you’ll be able to benefit from our market expertise and garner the most favorable terms possible.