Tenants who find themselves in a situation where they need to consider buying out of their existing office lease often do so for various reasons. In this article, we will explore the three main motives behind such a decision and discuss the potential advantages and considerations for tenants. Additionally, we will delve into the implications for landlords, including their strategies to avoid extended vacancies and the benefits they can offer to tenants in the process.

The commercial real estate market is currently offering excellent opportunities for companies with leases expiring in 2023, 2024, and some in 2025. Negotiated net rental rates are 15-to-30 percent below the asking rent, and landlords are becoming more flexible in signing long-term or short-term leases while providing significant free rent, tenant improvement allowances, and options to expand, renew, cancel or downsize. Subleasing also provides an attractive alternative, thanks to its low rental rate and free furniture, making it the perfect time for companies to lower their costs, upgrade their space and/or location, and make their office lease flexible to meet a changing future.

Today we discuss the options available to companies looking to downsize their office space due to cost-cutting measures. We'll highlight the importance of speaking to a broker well in advance of lease expiration and explore alternatives to downsizing in-place.

When signing a lease, you become remarkably familiar with the contents of the document as you tweak details and negotiate for major and minor concessions. However, once it is signed, filtering through a dense, fifty-page document is cumbersome when making a site-related decision. What you need at this point is a lease abstract.

Whether relocating your office or renewing the lease at your current location, you should be making a well-researched, informed decision. Every aspect of this decision should be analyzed beforehand including the impact of a move on your employees, especially their commute. Companies must attract and retain valuable employees to survive. Consider the positive or negative impact an office move will have from an employee’s perspective.