My Lease is coming up for renewal…Now what???

Sometimes it comes up annually and sometimes it comes up every three to five years…time to renew your lease…Here are some things to consider when the time comes to start the lease renewal process.

When should I start to look at renewing? Should I think about moving? Am I paying too much in rent? All good questions…

Below are five things I know about commercial leasing that will help to ensure a smooth renewal process when your time is right.

1 – It’s not too early – You may think it’s too early to start evaluating your options, but it’s not. Give yourself a solid year to identify relocation options, review your current  renewal options, and make the right decision.

2 – Hire a tenant rep – The agent hired by your Landlord to negotiate your renewal represents the Landlord… NOT YOU! His job is to get the Landlord the best deal possible. Hiring a Tenant Rep allows you to focus on running your business so you don’t have to handle the lease renewal process by your self on top of everything else you’re doing.

3 – Remember the amortized expenses – If your initial Lease Term included Fit-Up costs that were amortized over the term of the lease, it’s time for those expenses to drop off. Be sure your Landlord rolls your rate back and does not continue on the same schedule.

4 – What about other expenses? – Consider expenses beyond the Lease Rate during the lease renewal process. You need to consider moving expenses, I/T expenses to relocate and set up your phones, data, etc…and if you’re considering moving to a nearby city or town, utility expenses may be as much as 30% higher (or lower).

5 – Don’t assume anything is standard – Regardless of what  your landlord says, the listing agent says, or anybody else for that matter, you have the right to re-negotiate any and every provision of your lease when it comes time for the lease renewal. Review all terms of your lease…did you have a personal guarantee? Ask for it to be removed. Does your lease  have a relocation provision? Ask for that to be taken out…Make sure the lease you sign is a document you are comfortable with.

If you found this information useful, or if you have questions about the commercial lease renewal process that I did not answer, please let me know by leaving a comment below.