When your commercial lease is coming to an end and you must decide whether to renew or look elsewhere, it is important to work with a tenant reps firm that can help you carefully analyze your circumstances.
Naturally, if the space no longer suits your needs, you may want to work with tenant reps to find a new location. Yet even with the assistance of a tenant reps company, moving is time-consuming and costly. Choose wisely by considering the important points below and how they may affect your business.
Trends in commercial real estate and business locations change over time. Is your current location still as desirable for your company today as it was when you first leased it? Tenant reps point out that you should consider everything from employee and client convenience to how the business community surrounding you has changed.
Another constantly fluctuating factor is rent and the current demand for commercial space. With the assistance of an experienced tenant reps company, you can determine the cost of local rents and whether yours is representative of these rates.
In some cases, you may come out ahead if rents have increased considerably. Yet if it turns out that you are paying too much in comparison to similar spaces, find out how you and your tenant rep firm can negotiate with the landlord for a more favorable renewal deal.
Building Technology and Amenities
Technology continues to change and business growth requires you to embrace it. Consider whether the building is properly equipped and wired using the latest and most efficient technology, such as high-speed wireless internet, VoIP and hardwired phones, new cabling to meet other demands, or other improvements if necessary.
Think about the amenities available to you as well and whether changes in your company demand new or additional ones. These are all bargaining points that tenant reps can discuss when negotiating a lease renewal.
Make sure to accurately assess how your company utilizes its workspace and whether you need more or maybe less space. You want to make efficient use of all available space to ensure cost-effectiveness.
Would certain improvements or a redesigned layout that you and your tenant reps company plan give you better use of the same space based on the way you need to use it today? Or is there a better, more suitable space available elsewhere that meets your needs more easily and affordably?
Safety and Accessibility
Along with technology, amenities, and usable workspace, you must also think about fire safety, hazardous material concerns, and other safety issues. Is the building safe and being appropriately maintained? Does it meet local fire and safety requirements and does it provide required handicap accessibility?
If the building is in need of updates to meet safety codes or has hazards like asbestos present, this could be a factor in your decision to leave unless the landlord will handle these issues to provide a safer, more accessible space for you and your employees.
The Option of Moving
After considering all the above details, think about what you would require to move your business and whether doing so offers more benefits than staying in your current building. Depending on the extent of negatives you and your tenant rep identify when assessing a lease renewal, the cost and time spent relocating could still give you a better deal on a more productive workspace.
In summary, it is important to understand that before you can decide whether to stay in your current building or move to another one, you must weigh all the pros and cons with an experienced tenant reps company. Rent rates are important, but your tenant rep knows that there is much more to consider than rent.
By working with a skilled tenant reps firm, you will do the best for your company and identify whether negotiating a lease renewal is your best option or if the investment of moving to a new building offers you more in the long run!