For companies with large office footprints, such as professional services and knowledge-based firms, office space is often the second-largest cost after employee salaries.
Unlike payroll, however, office space expenses are negotiable and flexible, offering a significant opportunity for cost savings.
As businesses adapt to evolving needs and rising costs, managing office space strategically can provide a direct boost to the bottom line. Here’s how to make office space work for you as a driver of value, not just an expense.
1. Start Early and Stay Proactive
Preparing well before your lease ends – ideally at least 12 to 18 months in advance – gives you ample time to evaluate your current space needs, compare options, and secure favourable terms.
Early planning opens up flexibility and negotiation leverage, enabling you to pursue potential cost-saving opportunities, negotiate incentives, and avoid rushed decisions that could lead to higher costs down the line.
2. Work with a Commercial Tenant Representative
Navigating lease terms, incentives, and market shifts can be complex, and a commercial tenant representative brings essential expertise to the process.
With up-to-date market insights, they can identify opportunities for savings and guide you through negotiations to ensure favourable terms.
Partnering with a tenant representative not only simplifies the process but also provides a strong advocate who will look out for your business interests, helping you secure the space you need at the best possible rate.
3. Build Negotiation Leverage by Exploring Multiple Options
To gain leverage in lease negotiations, it’s essential to evaluate multiple properties before making a decision.
When your landlord knows you’re seriously considering other options, they’re more likely to offer competitive rates and favourable terms. Touring several properties provides insight into the market and helps you make an informed decision that best aligns with your financial goals.
Strategic Advantage
By starting early, working with a commercial tenant representative, and exploring various options, you can transform office space into a strategic advantage. These tactics will help you secure terms that support your company’s growth, flexibility, and financial health.
