Your Lease is Expiring! Do you know your options? Do you have enough time to achieve your space needs? Do you know where to start?
Our team receives calls on a daily basis from Tenants in a panic. Their lease either expires in 1-6 months or they need space in 2-4 weeks. Leasing office space is a complex timely process with significant financial commitments to be considered by the Tenant.
The number one rule when it comes to leasing is to Start Early! Whether you plan on renewing, relocating or are looking for new space, it is important to allow enough time to evaluate your current situation, your projected future needs, assess the options in the marketplace and have the leverage you need to negotiate a favorable lease.
I want to renew my lease:
If you plan on renewing, the ability to execute a transaction in a shorter period is easily achievable. However, by doing so your current Landlord can make the assumption you do not plan on relocating. This gives the Landlord the leverage they need to keep you as a Tenant at less favorable terms than could have otherwise been achieved. Landlords know that Tenants will renew 70% of the time, as they understand the disruptions associated with an office relocation. In order to achieve the best renewal terms possible, you have to put your Landlord in a competitive environment, forcing them to get aggressive to retain your tenancy. Landlords understand the leasing process and the time needed to complete a transaction. By utilizing a Tenant Representation broker and implementing the proper timing to address a renewal, the Landlord realizes you are being informed about the current market conditions, the alternative options and they take your potential relocation much more seriously.
I want to relocate:
What do you need to consider when looking at a relocation? First you should establish an internal committee led by a senior employee and supported by the key decision-makers and department leaders (IT, Human Resources, office manager, etc.). Your Tenant Representation broker should have a single point of contact within this committee to keep the process simple.
The committee should work together to determine the following key components when considering new space.
When should I start?
Depending on the size of your organization and current market conditions, you should start the process of evaluating your office needs 18-24 months ahead of your current lease expiration. If you are a larger organization, we recommend 24-60 months of lead time.
By starting the process early, the burden of an upcoming lease expiration is eliminated, allowing employees to focus on business operations. The more time you have to negotiate results in better leasing terms whether it’s a renewal or relocation.
Where do I start?
By utilizing a Tenant Representation broker, the process becomes much more fluid and efficient. Our team handles lease negotiations on a daily basis, while a Tenant’s need to focus on their lease once every 3-10 years. Ensure your Tenant Representative is well qualified and has the technical skill, market knowledge and experience that your organization deserves. A Tenant Representative knows how to listen effectively to their client’s needs to ensure they are delivering and focusing on the important issues.
During this process, your Representative will familiarize you with the local office market conditions and review your existing lease commitments. By knowing the market vacancies, supply projections, current rental rates and tenant concessions, you will be in the position of leverage to best negotiate your next lease.
Cushman & Wakefield | Commerce can provide you with the Representation services needed to assist your company with your facility needs now and in the future.
Contact our team to discuss your specific office needs and the current opportunities in the Las Vegas market.