Are you facing an upcoming commercial lease renewal and wondering how you can best protect your bottom line? 2020 shifted the corporate landscape in unique ways, with many businesses choosing to work from home indefinitely, and countless business owners find themselves now facing the question of what to do with their commercial lease. Knowing what to consider before (re)signing on the dotted lines makes it easier to determine what works best for your team, and helps avoid getting caught in a contract that eats through your budget. Below, we’ll discuss a few key aspects to keep in mind when it comes to lease renewals. Read on to learn more!
To Renew or Not to Renew, That is the Question
It’s no secret that Vancouver’s corporate real estate market is ruthlessly competitive and finding the perfect office space can be a daunting task for any business. Whether you find yourself needing more space, wanting to downsize, or even debating whether or not to make the work from home shift permanent, there is no shortage of things you’ll want to think about before moving forward. The good news is, despite sometimes feeling stressful, lease renewals offer a fantastic reason to pause and evaluate your state of affairs. While it can often seem easier to just resign and give yourself one less thing to think about, the fact is, your commercial space plays a key role in your business development, as well as the outside perspective you present to clients.
Each year (or whenever your term comes to a close), you should take the time to compare your lease against your current business plans, evolving priorities, and examine if there are any aspects that need to be renegotiated to best fit your needs. Partnering with a trusted legal team makes it easy to navigate your current terms, as well as determine what areas can be altered to your benefit before you commit pen to paper.
What Do You Need to Consider?
In order to make the most of your commercial lease, or to decide if you should move forward at all, there are several factors you’ll want to consider, including:
What are your present and future needs?
As we mentioned above, 2020 brought a huge shift to the corporate landscape, with COVID-19 forcing many employers to adopt a work from home model to comply with constantly evolving health standards. As leases come up for renewal in 2021, businesses find themselves facing the question of whether or not they need to return to a traditional office space, or if they are able to continue a remote model that removes thousands of dollars of overhead costs each year.
Whether you’re considering a permanent shift to remote working and simply finding a communal meeting space you can use as needed, or are looking to make a dedicated return to the office as soon as possible, knowing what your current needs, as well as your forecasted goals, are plays a huge role in determining what to do with your lease. If you need to size up or down, need to adapt your storefront, or simply want a new space that allows you to start fresh, knowing how to shape your lease to your advantage is pivotal.
Rent and Budget
With many companies facing a tight fiscal year, another key aspect to consider before resigning your lease is to consider your current rent and how that affects your bottom line. If you feel that you are paying too much or that the amount you pay will put a strain on your finances, it’s time to look closely at your lease and to consider making some significant changes.
Condition of the Property
Lease renewals are a fantastic time to take a critical eye to your space and determine whether or not the property itself really works for your team. Maybe you moved into a slightly rundown location to save on bills years ago, but find yourself wanting a more modern location alongside having the finances to afford a change. Perhaps you discovered some frustrating features in your property partway through your lease, but could not afford to exit early. Or maybe, you just want a bigger, brighter space that allows your team to grow. Assessing your satisfaction with your current space is a key part of lease negotiations, and should never be discounted in favour of moving forward out of convenience.
Know Your Rights
One of the least talked about aspects when it comes to lease renewals is knowing how to ensure you’re protected moving forward. Many business owners find themselves rushed into signing contracts to secure a space without having the time to fully evaluate whether or not the terms of the contract are truly in their favour or identify any hidden clauses that may pose a significant detriment to them. Working with a team like Paperclip Law gives you the peace of mind of knowing that every last detail is covered and that your interests are truly protected. We’re here to help you learn your rights as a tenant and to fight alongside you to ensure that your business has the perfect space, as well as the perfect terms to grow, today, tomorrow, and in the many years to come!
Need Help? Paperclip Law is On the Case!
Navigating the legal ins and outs of commercial real estate doesn’t need to be a headache. Since 2011, Paperclip Law has helped businesses throughout the Vancouver region find the perfect fit and perfect contracts for their needs. Learn more about how we can assist you with all your corporate legal needs by contacting our team today!