There are five questions that help outline the minimum requirements that a company owner/decision maker should consider before embarking on your next leasing adventure:
1. How much space is needed and what are the general location parameters?
2. What is your budget for the new space?
3. When do you intend to move?
4. Who is going to oversee finding space options, touring, lease proposal review, space planning, construction plans and pricing, lease negotiations, and lease documentation?
5. Should you just renew the lease because it's less work and the space seems to work OK?
Many business owners can answer questions 1, 2, and 3 without much of a problem. However, question 4 is where things get messy and overwhelming. Leasing space is a process that is quite long, tedious, and challenging. Most companies do not have the time or expertise to handle this themselves, so 75% of them choose to renew their lease instead of looking for alternate space that may serve their needs better.
Of course, landlords are also aware of this percentage, and this is why lease renewals tend to be overpriced versus other spaces in the market. Most landlords don't offer as many concessions on a lease renewal as compared to what a tenant would get on a new lease.
What if there was a way for a business owner to outsource the items in question 4? Good news — there is a way! A dedicated corporate real estate advisor works with businesses to find and evaluate space options, and then negotiates lease terms on their behalf.
S5 Advisory exclusively represents tenants and provides principal-level expertise based on transparency, integrity, and trust. With ITRA Global members worldwide, S5 Advisory is uniquely positioned to meet all your real estate advisory needs. So, before you talk to your landlord about a lease renewal, consult with one of S5 Advisory's commercial real estate experts.