Stay or Go? 3 things to consider when your office lease is expiring
Business owner, Mark, who runs an investment firm in Singapore saw his business sales volume increased quarter-on-quarter by 25%. The office lease was due to expire in six months’ with an option to renew for another three years. As everyone was busy chasing their targets, Mark renewed his office lease without much thoughts as he simply had no time.
Mark’s decision is typical. A wise choice? Not necessary.
After just a year into the lease renewal, Mark has to take the tough decision to rescind the contract and moved into a larger space in an opposite block due to business expansion needs. The latest move not only disrupt business continuity but also added financial burden to the company. Mark paid a 15% premium to move into the new space due to raising office rents. This is on top of the penalty paid for early termination of his lease.
1. Current Leasing Market
Rent renewal package was offered at the time when the lease was first signed and is to a good extent agnostic of future market condition. Armed with the right market advice, the team in spaceSense.co is able to provide a forward view of the leasing and rental trend. This allows you to a make an informed decision efficiently, potentially saving your business time and money.
2. Your Business Future
Business owners understand volatility. The business climate can change quickly and that affects workspace needs (see Mark’s example). Having the right fit and incorporating flexible workplace solutions will be increasingly relevant.
This is part of the value add that spaceSense provides. We take care of all your space planning, design and fit-out needs so that you can focus on growing your business.
In this day and age where office rents are rising and vacancies are tightening, finding the optimal amount of office space for your business can be tough. Find out how much space is optimal for your business.
3. Other Key Cost Drivers – Office Fit Out, Relocation & Reinstatement Cost
Most businesses are concerned on the office fit-out cost when it comes to relocation. Although additional expenditure is inevitable, this should not be the reason that shuns owners from relocating their businesses. A complete office fit-out offers opportunity to optimise office layout, update equipment and facilities to boost staff morale and work productivity!
Here are the 4 tips on how to handle your office lease expiry