Process
The biggest mistake tenants make is waiting until they have about 6 months on their lease and approach their landlord and say that they are not sure if they are going to renew or move.
Landlords know there is not enough time for a firm to move and the tenant has lost its leverage.
To move, a firm must sign a lease, get space plans completed then complete construction drawings for pricing and permitting, getting the space built-out and then move.
| Lease signing | 1 week |
| Preliminary space plans | 3 weeks |
| Complete construction drawings | 3 weeks |
| Pricing the drawing | 2 weeks |
| Permitting | 3 weeks |
| Building out the space | 12 weeks |
| Punch list and move-in | 2 weeks |
| Total time | 26 weeks |
In addition, it takes a minimum of another 6 months to establish geographic parameters, prepare initial market reports, tour buildings, issue RFPs, analyze proposals, interview space planners, have test-fit drawings completed on the building of interest, get basic pricing of the drawings, counter the original proposals, and complete final negotiations.
Don't procrastinate, even if you want to renew! The best way to negotiate a renewal is to give your firm the lead time it needs to move if you do not like the renewal terms. When discussing a renewal, the best rule of thumb is to assume that you are going to move - this gives you the lead time and the leverage that you need.
