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Renewing your Office Lease: Don't get caught out!

If your office lease is nearing expiry, and you are considering staying put and renewing the lease, don't just assume it will be renewed on the same and/or more favorable terms.

Many tenants fall into the trap of leaving it all too late to contact the Landlord about renewing their office lease; and leave too little time to negotiate the best terms, or to seek alternative premises should the Landlord's draft proposal involves substantially higher costs than anticipated.

Tenants are strongly advised to review their office lease options early to avoid getting caught into the trap of having to renew your office lease on unfavorable terms. This puts you in a stronger position to seek alternative office space options should the re-negotiation process work out to be a less favorable option. Furthermore, the Landlord will know you are shopping around and making comparisons, which gives you greater leverage in your negotiations.

Here's 3 tips to consider when renewing your office lease:

Tip 1: Start Early
Best practice suggests you should start to review your options at least 9-18 months prior to your lease expiry to give yourself the best leverage in lease renewal negotiations.

Tip 2: Know your Notice Date, Period and How it should be served
Make sure you are well prepared in advance about how to serve notice (should you wish to) and the period required to give notice as set out in your office lease.

Tip 3: Understand your Options
Get up to date market comparisons from a Tenant Rep Broker so you can assess whether renewing your office lease is the most favorable option for you. Better still, you'll be able to use this information when renegotiating your office lease with the Landlord.

Tip 4: Let your Landlord know you are Shopping around
Doing so will put you in a stronger negotiating position. The Landlord is also likely to be more realistic about his offering if he knows you are looking at other properties. At at the end of the day, if you've been a good tenant - he's more likely to want you to stay and renew.

Tip 5: Seek Professional Advice
When renewing your office lease seek expert advice from a Tenant Rep Broker and a Real Estate Lawyer. Both have important roles in negotiating on your behalf and re-drafting/reviewing office lease documentation to ensure you are adequately protected.

To help you make an informed review about your current office property, use the Office Space Checklist to ensure it meets all your requirements before renewing your office lease.


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