By Patrick Mohney ·
The most common mistake we see tenants make is waiting for the landlord's renewal letter. By the time it arrives, the tenant often has too little time to seriously consider moving, and the landlord knows it. Your leverage in a renewal comes from having a credible alternative, and building that alternative takes time.
Step 1: Find your critical dates now
Pull out your lease and look for three things: the expiration date, any renewal option and the deadline to exercise it, and any notice you must give if you do not plan to renew. Some leases require written notice many months before expiration, and missing a deadline can cost you an option or, in some cases, automatically extend your lease.
Step 2: Work backward from how long a move would take
A sensible starting point is 12 to 18 months before expiration for a typical office or retail space, and 18 to 24 months or more for large, specialized, or heavily built-out spaces such as medical offices, labs, and industrial facilities with cranes, heavy power, or process equipment. Count the time to find space, negotiate, design, permit, build out, and move, then add a cushion.
Step 3: Define what you actually need
Has your headcount changed? Do you use your space differently than when you signed? Renewal is the moment to right-size, fix layout problems, add or give back square footage, or ask for improvements. Write down the must-haves before talking to anyone.
Step 4: Test the market
Tour a few realistic alternatives and request proposals. Even if you would prefer to stay, comparable offers show you, and your landlord, what the market will give you. Compare everything on total occupancy cost over the term, including build-out, moving, downtime, and operating expenses, not just base rent.
Step 5: Negotiate the whole package
Renewal negotiations can cover more than rent: a refreshed improvement allowance, free rent, caps on operating-expense increases, a shorter or longer term, expansion or contraction rights, and updated assignment and sublease language. A tenant representative negotiates these on your behalf while keeping your relocation options open.
If your lease expires in the next two years, now is a good time to talk. Blue Rock Commercial Real Estate represents tenants across Grand Rapids and West Michigan.