Market conditions, the size and complexity of the transaction, and option notice dates can help determine when to begin the process of evaluating your office lease. Time should be your ally, not your enemy during negotiations with any landlord.
Landlords know that other buildings you’re considering will most likely have to create a space plan, get construction pricing, agree on a rental rate, prepare and execute a lease document, apply for construction permits and prepare the space for occupancy. This is, at a minimum, a 4 to 6 month process. So a tenant that waits until there are only six months or less remaining in the lease term before asking the landlord for a lease renewal proposal is basically telling the landlord that it is not considering any other options.
Depending on the size and complexity of your office space requirement you should allow, at a minimum, the following lead times to begin evaluating your space needs:
|office size||lead time|
|1,000 – 3,000 square feet:||6 months|
|3,000 – 10,000 square feet:||6 to 10 months|
|10,000 – 20,000 square feet:||10 to 12 months|
|above 20,000 square feet:||up to 24 months in advance|
Consider engaging howardcommercial
This is the most important tip by far: Don’t do this yourself.
Even if your company is somewhat familiar with the market and rental negotiations, you will best be served by engaging an experienced commercial real estate advisory firm whose job it is to represent your best interests and help negotiate the best deal the market will bear.
Give us a call at 314.821.0085 or send us an introductory email at email@example.com