Often times when your office space lease is coming up for expiry the easiest thing to do is maintain the status quo. If your business isn’t in a growth phase, or doesn’t require any restructuring, it can be easy to just go with the flow and renew your office space lease with your landlord. For the more savvy business person, putting in a little more work can yield some great returns. Here are some things that you should keep in mind:

1 – Be careful as to HOW you renew your lease.

Most office leases have a set number of renewal/extension options. Don’t use them unless you have to. If possible, amend the existing term of your office lease and preserve any office lease renewals/extensions that you might have. This way you will preserve your right to continue occupying your leased office space for as long as possible.

2 – Address the office renewal EARLY.

This can’t be stressed enough. Your office lease will typically have a 6-9 month window in which you need to renew. Further, if negotiations get sour, you will want to have enough time to plan for a relocation. Most landlords will address renewals at least a year ahead of time, do it early and know what your options are.

3 – Look at alternative options and compare market occupancy costs.

Again, when you address the renewal early, it gives plenty of time to get out and look at some alternatives. Getting an idea of what comparable space in the office leasing market is going for will give you a critical sense of how to position yourself in the renewal negotiations.

4 – Review key terms of your Lease agreement.

Go through your lease with a fine-toothed comb. If there are clauses in there that you had to agree to when you first signed up, now could be the time to take them out. Alternatively, you might want to add some flexibility to your business; options to expand or first rights of refusal may help if your business is in a position to grow.

5 – Get third-party representation and hire a commercial leasing representative.

The best way to handle your lease renewal/extension, is to hire a qualified representative to handle it. They will provide the knowledge on how to structure the renewal/extension, they can setup tours so that you can view alternatives, they will have insider information on what rates and deals local landlords are doing, and they will also have the expertise to advise on your existing lease and suggest any changes. Most importantly, having a 3^rd party representative will help preserve your relationship with your landlord and ensure that you are doing the most you can for your business by ensuring that you secure the best possible terms.

Toronto space for lease and the Team at FR Capital Realty are seasoned experts when it comes to handling office leasing renewals. Contact us today to discuss what your options are and what you can expect when heading into a lease renewal.