Let's Talk: Planning for Lease Expiration – Why Starting Early Matters

Let’s Talk: Planning for Lease Expiration – Why Starting Early Matters

Your office’s lease expiration date may seem like a distant concern, but waiting too long to plan can limit your options and lead to unnecessary costs. Whether you’re considering renewing your lease or exploring relocation, starting the process early gives you the best chance to secure favorable terms and make a decision that supports your company’s long-term goals. Engaging a real estate advisor like Cresa early in the process ensures you’re prepared, no matter what the market brings.

When Should You Start Planning?

We recommend beginning lease renegotiations at least 18 months before your lease expires. Starting early gives you ample time to evaluate all options thoroughly and negotiate from a position of strength. Rushing the process often leads to limited choices, missed opportunities, and higher costs.

Renew or Relocate?

Deciding whether to renew your lease or move to a new space depends on several factors, including market conditions, your company’s operational needs, and future growth plans.

• Renewing Your Lease: If your current space aligns with your company’s goals and needs, and market conditions are favorable, renewing can offer stability and potential cost savings.
• Relocating to a New Space: Relocation may be a better option if your company needs more space, improved amenities, or a location that better suits your workforce. In a tenant-friendly market, relocation can also provide an opportunity to secure more competitive lease terms.

How Market Conditions Influence Your Decision

Market conditions play a critical role in shaping your negotiating power.

• In a tenant-friendly market with higher vacancy rates, landlords may be more willing to offer competitive lease terms to retain tenants or attract new ones. 
• On the other hand, in a landlord-friendly market, renewing your lease may provide more stability and predictability. By evaluating market conditions early, you can make a more informed decision that aligns with your company’s best interests.
  
   

Why Engaging Cresa Early Makes a Difference

Navigating lease negotiations and evaluating whether to renew or relocate can be complex. At Cresa, our advisors have dedicated their entire careers to exactly this! We work exclusively with tenants, never representing landlords, so you have an advocate who is fully aligned with your interests and committed to delivering optimal results.

Engaging Cresa early in the process ensures you have the time, information, and market insights needed to make the best decision. With our expert advisors, you can confidently explore all your options, secure favorable lease terms, and position your company for long-term success.