4 Tips on How to Handle Your Office Lease Expiry
You have come to the end of your office lease and have an important decision to make. You might find yourself stuck trying to figure out whether your company should stay or go. But do you know how to weigh up the costs and benefits of lease renewal versus relocation? And how do you identify the hidden costs that come with each option?
To determine the best solution for your business, you need to consider a range of factors. These include market stock, current rent levels and incentives, connectivity, parking, make good and fit-out costs, access, visibility and your overall business objectives.
Here a few tips to consider:
1. Renew your commercial office lease
If you are not looking to expand anytime soon, renewing your existing lease is probably your best option provided that the office renewal rental rate has not increased drastically due to market movement.
Get a professional real estate advisor with strong local market knowledge to perform a proper market benchmark to ensure that you are not overpaying for your current office size. Do this at least 6 months before renewing your commercial office lease so you could have time to consider other options, if need be.
2. Expand your existing office space
Moving to a larger space may not be a financially or operationally viable option, even for a growing business. Ideally, your office lease terms should consider the need for your business to expand within the same floor or building. It is often preferred to have your team working together in synergy rather than separated in different floors or buildings.
At spaceSense, our office leasing team will understand your business goals ie. business expansion plan, move-in date, existing office reinstatement obligation, office fit out, and plan out a feasible office relocation or set up schedule. Base on the mutually agreed plan, our team will execute the office lease negotiation for the interest of office tenants, be it long term or short term.
See related article on Renting Office in Singapore: The Essentials you need to know
3. Return space you don’t use
If you have reduced your local headcount, you probably have some under-utilised space on hand. Instead of moving out to a smaller office space, you could consider compacting your office layout and return the under-utilised space. Of course, this will need to be negotiated with the landlord and the success is highly dependent on how viable is it for the landlord to lease out the returned space.
4. Relocate to a new office space
spaceSense will evaluate your business needs, conduct a property search and present you with full market insights and alternatives to determine whether relocation is the best solution. And if it is, we will match you with the perfect space and negotiate the best possible terms on your behalf.