What's your lease strategy?

1 Assess your needs

Before you start looking for a space, you need to assess your current and future needs. How much space do you need? What type of layout, amenities, and location do you prefer? How long do you want to stay in the space? How much can you afford to pay? These questions will help you define your criteria and priorities for your lease search. You should also consider your growth projections, market trends, and industry standards to anticipate your future needs and challenges.

2 Compare your options

Once you have a clear idea of what you need, you can start comparing your options. You can use online platforms, brokers, or consultants to help you find and evaluate potential spaces. You should compare the rent, location, size, quality, and features of each space, as well as the landlord's reputation, financial stability, and responsiveness. You should also compare the lease terms, such as the duration, renewal options, rent escalation, operating expenses, maintenance responsibilities, tenant improvement allowances, and sublease rights. You should aim to find a space that meets your needs and offers the best value and flexibility for your business.

3 Negotiate your terms

Once you have narrowed down your options, you can start negotiating your terms with the landlord or their representative. Negotiating a commercial lease can be complex and time-consuming, so you should prepare well and seek professional advice if needed. You should have a clear understanding of your goals, priorities, and alternatives, as well as the market conditions and the landlord's position. You should also have a realistic and reasonable range of expectations and concessions that you can offer or accept. You should communicate effectively and respectfully with the landlord and try to build a rapport and trust. You should also review and understand the lease document before signing it and make sure it reflects the agreed terms.

4 Manage your lease

After you sign the lease, you need to manage it effectively throughout its term. You need to comply with your obligations, such as paying rent, maintaining the premises, and reporting any issues. You also need to monitor your lease performance, such as the occupancy costs, space utilization, and tenant satisfaction. You should also keep track of any changes in your needs, the market, or the landlord's situation that may affect your lease. You should plan ahead for any lease events, such as renewals, extensions, terminations, or subleases, and be prepared to renegotiate or relocate if needed.

5 Review your strategy

Finally, you need to review your lease strategy periodically and update it as necessary. You should evaluate your lease results, such as the return on investment, the alignment with your business goals, and the satisfaction of your stakeholders. You should also identify any strengths, weaknesses, opportunities, or threats in your lease strategy and make adjustments accordingly. You should also seek feedback from your team, your customers, and your advisors to improve your lease strategy and performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?