Should I stay or should I go?
Knowing what’s on the market and the going rental rate for space is the tip of the rental and leasing iceberg. Not all spaces, landlords, and leases are created equal.
Connect with an Advisor
Should I Stay or Should I Go?
Knowing what’s on the market and the going rental rate for space is the tip of the rental and leasing iceberg. And not all spaces, landlords, and leases are created equal.
Connect with an AdvisorWhile a new space has the potential appeal of new paint, carpet and configured to suit your needs, what about your current space?
If you renew or extend your lease, what can you negotiate?
Some Key Considerations
Extend or Renew?
What’s the difference? Are they one and the same? There’s actually a big difference between that two that could make a big difference in your options.
Notice Period?
How much do you have to give the landlord to exercise renew and extend options? You might be surprised…
How is Rent Determined?
Is there a fair methodology used for determining you rent? Is it fixed, market based, arbitrary, or something else? The true value of your space compared to the market is very important.
Arbitration Clauses
What does it mean to have an “arbitration clause”? Do you know if it is worth it to lean on this in the event of a disagreement?
Can I Walk?
Once you’ve exercised your option to renew, it’s binding – that means you’re committed to stay without even knowing what the rent will be. Most tenants don’t want to be in this position.
Is It Time To Downsize?
Many tenants don’t need as much space today because of hybrid work. Reducing your footprint should be considered if this option can be exercised.
Extend or Renew
When deciding to stay in your current building or relocate to a new one, there is a lot to consider, including whether your option to extend or renew is worthwhile. Having a seasoned real estate advisor focused on tenants on your side is a significant asset.
Negotiable? Think Again
Many tenants believe that they are protected with their ability to stay in their commercial lease if they have the option to renew or extend. However, commercial leases are built differently than residential leases. In a typical lease renewal or extension, very little is negotiable.
