Renewals in commercial leasing can be almost as important as securing a lease in the first place.
There is quite a bit of finesse to this process.
Arm the alarm
First piece of advice: don’t leave it up to your landlord or property manager to remind you about a renewal.
Print off your critical dates for rent escalations, expiries, notice periods, etc.
Keep those dates handy and update whatever calendar system you utilize to remind yourself well in advance of them coming due.
Outlook is especially helpfully for this, as it allows you to pin a date/time and set a reminder notification as far out as necessary.
Another good way to alert yourself is by redundantly adding those dates into your phone calendar.
As the tenant, your best first step in a renewal negotiation will start with you initiating it.
Whether a market is up or down, it’s important to seek comparable vacancies before signing on the renewal dotted line.
Commercial real estate brokers work not only for landlords, but we also represent tenants in renewals.
We are your best third-party resource to suss out the “best” deal being offered.
This isn’t just about the rate, it’s the cost of moving such as fixturing a new location.
We can help you do that math to see if it’s worth it.
Time is ticking
If you’re renewing your lease as part of an option to renew from your lease, don’t wait too long.
Options such as this will typically have a time period of which you must notify your landlord of your intent to exercise.
If the date lapses, it doesn’t mean you can’t stay and renew; but landlord is no longer obligated to negotiate with you.
There could be an instance where it benefits the landlord if you leave.
My bonus advice is this: tenants, and sometimes landlords, hit snooze on the renewal and forget all about it.
Don’t be that guy.
Make sure you get your renewal in writing otherwise you are effectively entering into a month-to-month tenancy.
Posted by Kelly Macsymic