Article by Dan Gilbert
When your commercial lease is coming up for renewal, it’s time to make a decision: do you stay, or do you go? There are a few factors to consider when making this decision, including:
- The Rent: The Landlord will generally present you with an offer of what they deem to be the “market” rental. Whilst quite often, a tenant will accept this as the new rental, this amount can be negotiated. The new rental can include an incentive that can be used towards your fit-out, a rent-free period or a rent rebate. Also, depending on the terms of the Lease, if the rental cannot be agreed to, it can go to an independent valuer to determine the rent for the renewed lease term.
- Your needs. Have your needs changed since you signed your current lease? Do you need more space or less space? Do you need a different location? For example, if you’re growing your business, you may need more space. Or, if you’re working from home more often, you may need less space. Consider engaging a designer to assist with a space assessment and repurposing your fit-out.
- The terms and conditions of your lease. What are the terms of your current lease? During the renewal, it’s a good time to request any changes to your lease if there are any amendments that you wish to make. You can also request for a shorter or longer-term renewal as well as requesting any refurbishments to the tenancy.
When it comes to renewing your commercial lease, it’s important to do your research and understand your options. There are a lot of factors to consider, such as the cost of renewing, the terms of your lease, and your long-term needs.
“The decision of whether to renew or not renew your commercial lease is a complex one. There are a lot of factors to consider, and the best decision for you will depend on your specific circumstances. However, it’s important to remember that you have options. Don’t feel pressured to renew your lease if it’s not the best deal for you. We recommend beginning this process 12 – 18 months prior to the expiry of your lease. Broadway Property can assist with every step along the way, removing the stress for you.”
Is your commercial lease up for renewal? Contact Dan Gilbert for a no-obligation chat today: dan.gilbert@broadwayproperty.com.au