Market News

Within the next 12 months, up to one-third of all commercial leases now in force will expire or come up for renewal.

If you, or your company, are currently leasing the space you occupy, it may be wise to take the time to evaluate your projected short-term and long-term needs to determine if the space you are doing business in is still the best option for you.

All too often tenants will simply stay where they are because it is easy and “comfortable”.  The question is, “Are there other options available in the market that could afford better long-term benefits to the growth and success of your company?”

Most businesses are very dynamic and tend to have significant changes over an extended period of time.  Therefore, you may want to do a little self-analysis by looking at the following and asking yourself some questions.

Size and Functionality:

• Does our current space still provide for the ideal optimum usage?
• How has our business changed in the last three years?
• Has the number of employees been stable, increased, or decreased?
• Do employees have enough work space to do their jobs properly?
• Do we have enough room to accommodate growth and expansion?
• Is the building still functional regarding utilities and technology requirements, exterior lighting, adequate parking, etc.?
• Do we have too much room?
• Could we be just as productive in a smaller space?

Location:

• How has the market changed since we moved into our current place of business?
• Where do my customers and employees live?
• Could we attract more customers if we were in a more accessible location?
• Could we attract and keep more productive employees if we were in a more accessible location?
• Are we situated in an area of growth or stagnation?
• Does it matter?

Image:

• How important is public image for our company?
• Does our current location say who we are?
• Would newer, more visible quarters enhance our image?
• Would new quarters have a positive impact on employee morale and productivity?

Economic Terms:

• Can we pay less rent by leasing a smaller space?
• Could we get more space for the same amount of rent?
• Could we get better terms or concessions from our current landlord to stay if we knew what other options were available to us?
• Would it make economic sense to purchase our own property?

Performing this internal exercise may help you determine whether to consider other options in the market prior to simply renewing your current lease.

A professional realtor who specializes in commercial real estate can help you identify those options by focusing on your specific needs and matching the appropriate properties in the market to satisfy your criteria.  It doesn’t cost anything to look.  So, even if you ultimately decide to stay right where you are, it still makes sense to consider your options.