You’re one of the fortunate ones in today’s economy. Your business is growing. And thanks to the current status of the real estate market, the tenant is in the driver’s seat. However, be careful. Tenants who need to expand, with time remaining on their lease, represent one of the few cases in this type of market where the landlord has some leverage. Here are 10 issues you should consider during office expansion. 

1) Relocating in the same building

Your current landlord may be able to accommodate your growth. Location can be vital in terms of keeping your employees by maintaining the same commute, and it can also lock in some of the amenities you currently enjoy.

2) Buyout of your current lease

Though unlikely, it’s worth trying to negotiate a buyout of your current lease so you can relocate to another building.  Talk to the adjacent tenants.  Do they need space?  If the landlord is interested in negotiating a buyout, he probably has someone else in mind. 

3) Obtaining favorable clauses in your new contract

These clauses can include periods of free rent, reduced rent, a new base year for operating expense calculations, a new buildout funded by the landlord or even additional options to cancel, expand or renew.

4) Longer term on your new lease

If you’re happy with your new base rent, you may wish to lock it in by extending the lease for a longer period of time. Landlords will often agree because of the security your growing business provides. 

5) Burn down of your security deposit

If you have good credit, you may be able to negotiate a return of your security deposit in stages as long as you avoid default on your rent payments or other responsibilities.

6) Who’s your neighbor?

In case of uncertainty about your future space requirements, or to avoid the initial burden of excess space, search for offices on a larger floor with adjacent smaller tenants.  Request relocation clauses for the smaller tenants before you move into the building. If someone needs to relocate to expand, let it be your neighbor instead of you. 

Even better, put a value on space with adjacent smaller tenants, especially those with leases expiring in just a few years.

7) Parking

Something as basic as easy parking can affect your ability to attract employees and ensure your clients arrive in a good mood, ready to do business. Not harried by circling around the block ten times to find a space.

If you need a lot of spots, be sure to address the parking issue.

8) Timing

The best time for expansion negotiations occurs either before you move into a building or when your lease is about to expire. Either way, you can pursue other alternatives, thus preventing the landlord from demanding a higher rental. 

Be careful when investing in your space. The greater your out-of-pocket expenses, the more you should protect yourself with options to renew or expand

9) Subleasing

Subleasing may be an option to maintain income from your current location, or to give you flexibility when you move to a larger one. The economy is volatile, and, as a result, your business is, too. Even though you’re growing now, you need to make sure you’re not biting off more than you can chew. The ability to sublease will reduce the burden of double rent in case a sudden relocation is required. 

10) Thorough evaluation of the market

In addition to knowing what’s out there, you need an experienced negotiator by your side, a lawyer who understands your needs, and an architect who can suggest alternatives in terms of the office layout. Your new location will probably be your business home for many years. Make sure you are happy there.