We see tenants (occupiers) make the same mistakes over and over whether they are leasing office or industrial space. So next time you are considering a new lease, lease renewal or relocation, learn from other people’s mistakes and don’t do the following...
Top Ten Mistakes
- Putting yourself at a disadvantage by beginning renewal or new lease negotiations too late
- Lacking clearly defined business or real estate objectives
- Focusing exclusively on financial costs
- Failing to appoint a project leader as the internal single point of contact
- Making inaccurate estimations of the company’s space requirements
- Acting too slowly once a decision is made, and consequently missing out on opportunities
- Agreeing to terms prior to obtaining a logistics consultant (industrial) or space planning perspective (office)
- Failing to allow for future expansion or contraction
- Lacking the knowledge of future opportunities; often, the best deals are secured well in advance of space becoming available
- Failing to leave enough time at the end of the lease to fulfill “make good” obligations, or failing to understand the exact terms of your tenant improvement allowance
A landlord or listing agent loves it when a tenant represents himself/herself to lease a space or renew a lease. It’s like shooting fish in a barrel. Find yourself a qualified real estate advisor and let him/her focus on the real estate while you focus on growing your company.