Office lease expiry?
Wondering what to do?
As businesses grow and develop over time, their space requirements and ways of working change, especially with evolving technology. If your current office lease is up for expiration, it’s a good idea to take the time to carefully appraise your current office space to determine whether you should look at a new space or renew your current lease. The drivers behind this could be a larger space to accommodate growing staff numbers or moving to an office with lower rents.
Research the market
Start your negotiations and research as early as possible. At Aspect, we suggest 12-18 months away from your expiry. This will give you time to thoroughly review available space options or renewal terms. The earlier you start the market research process the more effectively you will be able to locate a great space and negotiate a suitable deal.
A note to remember; no building is the same – rent, vacancy rates and incentives will vary, depending on the building, location and the landlord.
- How are the market rents?
- How do they compare with your current lease and rent?
- What are the vacancies like in your current area?
- What grade building are you in and would you continue leasing the in same grade building?
- Are there any new commercial developments under construction? When will they be ready for occupancy?
Have all documentation relating your current lease and building information ready for review. This may include:
- Lease contracts
- Financial Documents
- Building information
- Fitout or reconfiguration budgets
- Business case documents and projected growth forecasts.
In preparation for negotiations, you need to work out what the ideal length of the lease term should be. Small businesses may opt to take a shorter lease, with options to renew for a longer period. This means that you are not locked into space for a longer period and gives you flexibility.
Analyse your situation
Think carefully about whether it would be better, in the long run, to renegotiate your lease or to relocate to a new space. To make the right decision for your company, you’ll need to consider how your company’s growth plans will impact current and future space requirements.
Office relocation can be the catalyst for implementing new ways of working. Moving office allows your organisation to reassess how you work now, and can you use your new office space to strengthen the sustainability of your organisation and promote growth.
Changing the layout or design of your existing office isn’t just about improving productivity; it is equally about creating a place where people want to come to spend 40 hours a week. It’s important to encourage employees to have their input into workspace changes. This ensures buy-in and a feeling of ownership as well as producing an environment they would choose to work best in.
- How well your current office space suits the way your employees work?
- Does your space allow for collaboration between teams, and provide quiet or retreat zones for relaxation?
- What work settings do your employees need to work most effectively?
- Is your technology up to date? Having the right technology is critical to maximising the returns from the physical space.
Request a copy of an office space checklist here