Planning for your office lease expiry isn’t just about ticking boxes and renewing contracts.
Done well, it’s an opportunity to save money and secure terms that align with your business needs. Done poorly, it can leave your company overpaying and locked into unfavourable terms for years.
Here are the top three mistakes companies make when planning for their lease expiry – and how you can avoid them.
Mistake 1: Starting too late
Procrastination isn’t just for teenagers with homework – it’s also a common pitfall in lease expiry planning. Waiting until the last minute limits your options, weakens your negotiating position, and often forces you into a rushed decision.
Why this hurts: Landlords know when you’re pressed for time, and they may not feel compelled to offer competitive terms. Plus, without enough runway, you miss opportunities to explore market conditions, create negotiation leverage, or negotiate better deals.
How to avoid it: Start planning 12–24 months before your lease expires. It’s like preparing for a marathon: the earlier you train, the better your outcome. An early start gives you time to assess your space needs, analyse the market, and position yourself for maximum savings.
Mistake 2: Automatically exercising an option to renew
At first glance, an option to renew your lease seems like the easy path: no hassle and no decisions to make. But here’s the catch – convenience often comes at a cost.
Why this hurts: Exercising your option means accepting the landlord’s terms, which may not reflect current market conditions. You could miss out on incentives like rent-free periods, fit-out contributions, or reduced rents – all perks typically offered during renegotiations.
How to avoid it: Think of your option to renew as a safety net, not a strategy. Use the expiry as an opportunity to renegotiate. Explore the market, create competition among landlords, and keep your leverage intact. You might be surprised at what you can gain by simply being willing to shop around.
Mistake 3: Not using an independent tenant representative
Office leasing is complex. There’s the market research, landlord negotiations, financial analysis – it’s enough to make anyone’s head spin. That’s where an independent tenant representative comes in.
Why this hurts: Without expert knowledge of the market and leasing trends, it’s easy to leave money on the table. A tenant representative not only brings expertise but also levels the playing field. Landlords have experts working for them – shouldn’t you have one, too?
How to avoid it: Partner with a tenant representative who works exclusively for tenants (not landlords). They’ll do the heavy lifting – from market research to negotiations – and typically save you more than their fee. Plus, you’ll save time and stress, which are priceless for busy executives.
Avoid these mistakes – and save money
Whether you’re planning to renew your lease or explore a new space, avoiding these common pitfalls can save your company time, stress, and a lot of money. If you’d like expert guidance to ensure you get the best deal, contact us for a complimentary Office Lease Expiry Consultation.
