Despite its generally negative connotations, procrastinating can be beneficial in certain situations. It can focus your mind in the waning moments before a deadline, “encouraging” – some may say “forcing” – you to do your best work.
Your company’s lease expiring is not one of these “certain situations,” however. Putting off considerations on if you’ll renew, relocate or build your own space will only cost you money and stress in the long run.
Any business owner should determine its physical location plans for the next lease earlier rather than later – the longer you wait, the lower your chances of finding a suitable place to house your business.
Not procrastinating with the process will pay off in the end. DRK and Company counts the ways figuring your next lease is not like waiting to do your algebra homework:
- Gives you leverage: There is usually negotiation involved when you’re leasing office, industrial or retail spaces. Waiting until you’re three months or less from your lease expiring puts the landlord in a position of power. They know you’re unlikely to find other suitable space in that time. Starting negotiations early puts you in a position of power with your landlord (current or potential) – they know you don’t have to sign with them.
- Know the market: Looking early will help you discover what kind of spaces and rents are out there, helping you determine the location that best suits you. Don’t be shy about letting your landlord know that you’re checking out the market – it should make them approach negotiations in a fair manner.
- Helps negotiate the lease’s deal points: Many elements of the deal are negotiated well in advance of a lease being drafted. Give yourself ample time to consider these elements and consider how they affect the future of the business. The letter of intent (LOI) process involves items such as:
- Lease term, rental rate and escalations (how landlord increases rent on long-term leases to keep up with inflation)
- Free Rent
- Tenant Improvements
- Operating Expense CAP
- Options for renewal and expansion
For more information on how DRK and Company can help in your search for office, industrial or retail space, call us at 614-540-2404 or contact us online.