Renew or Relocate?
The decision to renew a lease or to relocate is an important one for any business to consider. One must consider a few factors to accurately reach an outcome.
Location, long range goals, employee satisfaction, renovations, and moving costs/downtime all play a role in reaching a decision.
Where would you ideally like to be? Where would your employees like to be? Where can you best serve/attract customers? Are you close to transportation and amenities? These are all questions to ask before picking a spot to plant your business.
What is the long range vision for the business? Where do you see it in 2, 5, 10 years? Can you achieve this vision in your current space by taking more of it and possibly renovating or do you need a new space altogether? Does your current space fit the company’s’ vision?
What do your employees want? What will attract new employees? Talking to your people is always helpful to figure out their wants and needs and those of prospective employees.
Can you make/afford the necessary renovations in your current space? What type of tenant allowance can you get from your landlord? Renovations can be costly, but may improve morale and bolster productivity.
If I move or renovate, does the company have a place to go? What are your relocation expenses? Downtime can be hard on a company in terms of productivity.
Having a good renewal option is also an important consideration. If the terms are in your favor you may want to consider staying. If the terms are not so attractive, there is usually room for negotiation. As you can see, there are many factors to consider when making the decision to renew or relocate. Consider them all along with your current lease options and make the right choice!