Commercial Tenant: Should I Stay or Should I Go?
Is your current commercial or retail lease about to expire? Simply renewing it as usual would be the simplest way to address the matter. But a lease expiry also marks a critical transition point for your company.
This could be the window of opportunity your business has been waiting for so don’t let it pass you by.
Instead of just automatically renewing your lease as-is, consider what your other options are.
After Lease Expiry: What Are Your Options?
As long as your business is currently doing well and you have no plans for growth over the next several years, then staying put may be the most financially-sound decision for you. But don’t rule out the possibility of negotiating new terms for your lease. A renewal is an excellent time to make changes to ensure that you’re still getting the best deal. For example, perhaps you can negotiate for an incentive for staying in the property.
Make sure that you carefully consider the outcome of staying in your current location. Try to anticipate what the situation will look like several years down the road. Consult with your business partners and employees to determine whether or not everyone is truly happy in the current location.
Even if you feel that you have adequate space right now, remember that it’s wise to have a little breathing room that can accommodate unexpected growth over the next few years, just in case.
The expiry of your lease is an opportunity that won’t come again for quite some time so don’t take it for granted. Try not to dismiss the possibility of a move too quickly.
You may love your current location but foresee the need for some more space, down the road. Your upcoming lease renewal is a good opportunity to start a whole new commercial lease with your current landlord with new agreements for more rental area. The lease would also have to include new terms and conditions to suit the changed needs of your company.
The decision to uproot your company and settle down in a new location can be a costly one. There will be moving expenses and an upset to your employees’ usual routine and working styles. Calculate all the costs of moving before you decide to do so. You may find that while there’s a cheaper solution available, the location could harm productivity. Research what your operating costs will look like if you make the move.
If you think your business might be outgrowing its current location, then give yourself plenty of time to shop around before your lease expires. As a point of reference, you should begin your search at least a year before the expiry of your current commercial lease.
So … what should you do?
So should you stay, grow or go? There’s no single right answer. It all depends on the unique circumstances of your company. The most important thing is to carefully weigh all of your options in light of your company’s goals before you decide.
Our team here at Broadway Property will lead you through this process from start to finish, with personalised, expert advice every step of the way to help you make the right decision, and execute effectively.
Find out where to start with a free initial discussion about your needs. Contact us today.
- Ben Heritage and Ryan Stewart, Directors, Broadway Property