Is it worth considering relocating your company when your lease expires?
Moving can be costly, but with the current incentives provided by landlords, you might be able to find better premises at the same rent you’re currently paying.
Before making a decision, it’s important to objectively analyse your space and location needs, the associated costs, and whether a new location would increase your chances of success. Here are some reasons why changing locations may be a good idea:
More space: Many businesses relocate because they’ve outgrown their current space. If your company has expanded beyond its current floor space, make sure you’re utilising your current space as efficiently as possible before considering a move.
Less space: Nowadays, many businesses want to right-size to save money. Trends like hot desking, remote working, part-time employees, and offshoring allow businesses to operate efficiently with less space.
Better access to clients: Clients and customers appreciate convenient locations. Moving closer to an established client base or a pool of potential clients can help increase sales.
Enhance your image: Your company’s location reflects its success and brand. For example, law firms prefer plush offices, while youth brands occupy trendy warehouse spaces.
Better staff amenities: Providing convenient, comfortable, and attractive premises can be crucial, especially when there’s low unemployment and employees have options. It can help attract and retain talented staff.
Cost reduction: Rising rent can strain a company’s finances. Choosing a cheaper location can reduce costs, but it’s important to consider if it may affect the quantity or quality of clients you attract, potentially lowering profits.
Creating a brief
Once you’ve considered the above factors, you can create a brief outlining your company’s location and premises needs. List what you aim to achieve with the relocation, such as increased profits, streamlined operations, convenience, employee satisfaction, and a better business image. Additionally, include reasons why your current location is no longer suitable.
Remember, don’t decide to move simply because you “want” to. Relocate only if it makes solid business sense.
To avoid having vacant space, your current landlord may offer a discount to renew your lease. When comparing the costs of staying and relocating, consider this discount. Staying put means you won’t have to pay for movers, renovations in your current space, or fitting out a new space.
Better office, same rent
While your landlord may offer a discount to stay, in the current commercial property market, it might be possible to move from outdated offices to freshly fitted-out, premium office space. Let me explain…
Currently, it’s a tenants’ market, as businesses are cautious about the future and reducing their office space demand. In some areas, like Sydney, the vacancy rate for CBD office space is high. This situation has led many landlords to negotiate excellent deals to keep their properties occupied.
Weigh up your options
In summary, when your lease expires, carefully assess your company’s needs and evaluate the potential benefits of relocating. Take advantage of the current market conditions, where landlords are offering incentives, and consider whether a move can provide you with better premises and opportunities for success without increasing your rent.
How can we help?
If your lease is nearing expiry, please contact us to discover how we can help you renegotiate a great deal, or perhaps even upgrade to a new, better office for the same rent you’re paying and no extra cost.
