Lease Renewal Opportunities

In a lease renewal, you can change a lot more than the standard options of extending your term and reducing your rent. 

Before you start negotiations, it’s best to review the accumulated three to ten year history of issues with your current space layout, HVAC system, water leaks in the ceiling or exterior windows, needed common area upgrades in hallways,bathrooms & the building lobby, amenities, and parking area. Renewing a lease brings the opportunity to fix them.

Brainstorm with your team to evaluate what needs to be changed. Landlords want to retain their tenants to prevent downtime and avoid the investment needed to attract new occupants. This factor makes them more receptive to your proposed improvements.

For example, can your space benefit from more or fewer private offices, or other modifications to the layout?  Did building repairs ever become an issue? 

You may also wish to change or update onerous clauses in your lease such as options to expand, contract and/or renew.  Calculations of operating expense and tax escalations should be adjusted using the current year as the base. Sublease restrictions might be eased. A non-disturbance clause may provide much needed protection. And your hefty security deposit can be reduced!

All these items, and more, should be carefully reviewed before extending your lease. Consult with a professional to elicit these issues while you can still resolve them.