Renewal vs. RelocationWe approach every relocation as if it's a renewal and every renewal as if it's a relocation. We advise our clients do the same.
You'll probably end up with a lower rental rate renewing than relocating. The reason is the build-out costs factored into your rental rate are lower (or even eliminated entirely) on lease renewals. Build-out costs for tenants that renew are more likely to be for "redecorating" (new paint and carpet) than expensive remodeling.
That's why it's critical to approach every transaction with the same strategy, whether it's a renewal or relocation. If you're renewing, increase negotiating leverage by considering other buildings. This insures the landlord makes realistic adjustments for the reduced construction costs. Use the same competitive approach if you're moving. Competing buildings offer their most aggressive rental rates if they think you may renew your current lease.
Every 5,000 square feet represents about a $1 million fixed expense over 10 years. With that much money at stake, you want to make an intelligent decision. For that you need the most effective strategy and the best information available.
Rental Rate vs. Rent
Never simply shop rental rates. What's really important is how much total RENT you pay. And the easiest way to reduce rent is to develop efficiently sized space.
We created a patent pending software program ('SpaceLink™') to identify inefficiencies in space plans and insure clients the most efficient use of space (see examples in our Office Relocation section). We have an on-staff architect and are registered as a professional design firm. We produce in-house space plans, pricing drawings and construction documents. This ensures the space requirements projected by SpaceLink are implemented correctly.
While a lease renewal might return the lowest rental rate, we may be able to show you ways to reduce space inefficiencies and lower your RENT.