01 Jul Time – A Tenant’s Best Friend
Understanding the direct correlation between Timing & Leverage is imperative in controlling the commercial real estate process in your favor. When opening a new office or retail location, the process is equally as long, but since there is not an approaching lease expiration or drop dead date, the leverage is maintained throughout the process.
However, when renewing your lease or considering a relocation from your current space, the closer time moves toward your lease expiration, the less leverage that is maintained. Since there are a myriad of limiting elements that require “time” for a realistic move, if your lease expires in 2-3 months, your Landlord knows, moving is not a realistic option, and thus they know the strategy is playing in their favor. It results in the perfect opportunity, for a Landlord to present a below market deal, knowing that your options are severely limited.
Not only does time play perhaps the largest factor in maintain leverage, but it also factors into the logical transition of a new lease. Whether it’s simply renovating your current space, or relocating, the process can be stressful, and ensuring there is sufficient time to properly evaluate the terms of a new lease and the design/construction of a new space, will ensure adequate time is allocated to each step of the process. We cannot urge you enough, to start the process, at a minimum, six (6) months prior to your lease expiration, and in the idea world – 9 to 14 months in advance. By starting the process early, it allows us to maximize our service and evaluate, negotiate, and implement the objectives of our clients.