{"id":2813,"date":"2017-03-14T08:32:16","date_gmt":"2017-03-14T15:32:16","guid":{"rendered":"https:\/\/www.officefinder.com\/officeblog\/?p=2813"},"modified":"2024-02-25T14:37:39","modified_gmt":"2024-02-25T22:37:39","slug":"hidden-costs-renewing-office-lease-unrepresented","status":"publish","type":"post","link":"https:\/\/www.officefinder.com\/officeblog\/hidden-costs-renewing-office-lease-unrepresented\/","title":{"rendered":"Hidden Costs of an DIY Office Lease Renewal"},"content":{"rendered":"

\"NoSo, you are getting near the end of your office lease and considering your options. One of those is to move to a new office location, but that is a lot of work and your current space fits you well. The other option is doing an office lease renewal at your current office lease. Many tenants thin that they can save money doing it themselves. We have found that office tenants typically make two major mistakes when renewal time comes around.<\/p>\n

Common Office Lease Renewal Mistakes<\/h3>\n

The first is folding your cards by asking your landlord for a renewal proposal. By doing this you are indicating two things to your landlord, the first being that you are only considering a renewal and not exploring any competing space and the second is that you have not sought the assistance of a professional tenant representative to educate you on the market. Once a landlord thinks that you are committed to staying and will be going through the renewal process unrepresented, he can and will most likely make you an offer that is not in line with market rates and terms. Both of these pieces of leverage for the landlord can be eliminated by engaging a tenant representative specializing in commercial real estate. While a landlord may tell you this will raise the rental rate, this is simply incorrect, as brokerage fees are already factored into the lease rates and agreed to in advance with the landlords listing broker. Additionally, just letting your landlord know that you have retained representation tells him to
\nput his best foot forward or risk losing you as a tenant.<\/p>\n

The second common mistake made by tenants, is not allowing enough time for the relocation\/renewal process as a whole. Leaving too short of a time puts the advantage in the landlord\u2019s hands, as your landlord will realize that you don\u2019t have the time you need to relocate if you don\u2019t like your renewal proposal. Tenants occupying less than 10,000 square feet should begin the process no less than one year out, for spaces larger than 10,000 square feet, up to two years of planning may be required.<\/p>\n

You Don’t Need a Tenant Rep for an Office Lease\u00a0 Renewal?<\/h3>\n

Here are some reasons why you may think you don\u2019t need to engage a commercial real estate professional to represent you in your lease renewal:<\/p>\n

\u201cMy landlord offered me a $.50 reduction in my lease rate\u201d<\/strong>
\nWhile that sounds nice, it is actually quite common for market rates to drop more than the lease rate reduction offer by your landlord.<\/p>\n

\u201cMy landlord is giving me a great lease rate; I spoke with my neighbor and someone in another building to confirm this\u201d<\/strong>
\nWhether someone is getting a market deal is not only dependent upon the rate, there are a number of variables that contribute to getting a \u201cmarket deal\u201d. If you can\u2019t answer the following questions, then you have left the door open for the landlord to take advantage:<\/p>\n