Your lease might be due to expire soon.
If it is, beware of your landlord trying to pressure you into renewing your current one. He might do his damndest to keep you on as a tenant because if he does, he won’t have to go through the considerable hassle of finding your replacement.
Landlords know that commercial office leaseholders need a compelling reason to relocate. Therefore, tenants end up renewing their existing lease 70% of the time. However, before getting locked into a new contract by signing on the dotted line, you need to decide whether it’s better to renew or to relocate to a new space.
There are reasons why renewing your lease makes sense. There are also reasons why it might be a good idea to relocate. Here are the reasons to renew:
1. Saves You Time
One of the pros is if you stay where you are now, you won’t have to spend all that time looking for new space. This is time you can instead put into building a thriving practice.
2. Moving is Stressful
Moving is incredibly stressful. Why go through that arduous process if you can avoid it?
3. Moving is Expensive
Moving can be quite costly because you’re going to have to shut the office down for the move. Then, you’ve got to pay to transport all your office furnishings and medical equipment to a new location.
Also, if your new landlord is too stingy to give you cash to renovate your location, you'll have to pay for this expense yourself. If you stay right where you are, you won't have to pay for moving or renovation costs, so your practice can continue as usual without the slightest interruption.
4. It Takes Time to Get Used to the New Space
It’s going to take time for your employees to get used to their new surroundings, resulting in decreased productivity for a while.
5. Maintains a Good Status Quo
If you're on terrific terms with your current landlord, you'll probably get an unbeatable renewal rate.
Why gamble on getting a building owner who might make your life miserable? If your existing spaces satisfied your current and future practice needs, renewing might be your best option.
Here are the reasons to relocate:
1. You Have an Out-Of-Date Office
It might make sense to move if your current building is woefully out of date, and your landlord won’t do anything about it. Maybe when you first moved in, everything was oh so new and very modern with a stunning design that incorporated the latest trends.
But after all these years, your once state-of-the-art office space is looking a bit drab and worn down. When you talk to your landlord about giving you a little cash to bring the antiquated look of your place into the twenty-first century, he just shrugs and walks away.
So, it might be in your best interest to find greener pastures. By doing so, you can shake off the dust of years of neglect, and with that, the stultifying complacency your practice aesthetics are mired in.
A new, fresh building identity might be just what you need!
Because patients pay attention to these kinds of things, this can also help to lure new people in. Exceptional patient experiences start with exceptional office environments, so consider the environment you’re creating.
2. Rents in Your Market Area Have Decreased
If rents in your market area have decreased, renewing your lease could mean you're losing thousands of dollars by paying higher rent than you need to.
3. Your Current Space Is Too Small
You should relocate rather than expand if there's not enough room where you currently are. When you move to a bigger office, you can also see to it that it perfectly accommodates your needs. A more efficient space customized to how you want it to be can end up saving you money, increasing your bottom line, and improving employee morale.
4. You Could Get A Landlord More Willing to Work with You
If your current landlord is impossible to deal with, relocating could give you a brand-new one who’s more willing to work with you. This could save both money and your precious peace of mind.
At first, relocating might seem to be too difficult a choice, but don’t automatically dismiss the possibility. Sometimes, the status quo isn’t the best choice.
Think about your professional goals and whether your current office space supports what you want to accomplish. If you hire an experienced healthcare real estate tenant rep, he can help you negotiate your lease renewal. He can discuss your business plans, ideas, and goals to help you make your decision easier.
The time to consider your options is sooner rather than later. Don't wait until the month before your lease is due to expire. You should begin the process at least eighteen months before your contract is scheduled to end.
When you negotiate on your own, landlords believe they have all the power because they have considerably more market knowledge than you.
However, when you have a healthcare real estate tenant rep in your corner, the landlord will understand you're serious about negotiating the best deal for yourself. This means he'll think twice about trying to cheat you.
If you need an experienced tenant rep, call HPRG today!