The good news about a lease is that it eventually comes to an end.  But what do you do next?  And how to you decide?  On today’s podcast, Bob and Jan discuss 8 tips for deciding whether to stay in your current office or move to a new one.  It has been published that 80% of companies stay in the same space and extend their lease when their lease expires.  Why do so many stay in the same place instead of moving?  The main reason is that it’s the path of least resistance.  It’s easier and causes virtually no disruption to the business.  Below are listed the 8 tips to help you in evaluating this decision:

  1. Start with the corporate goals and objectives.  What’s the vision for the company?  What has changed since the last lease was signed 3-5 years ago.  Prioritize these to help decide what matters most.
  2. Evaluate the current space.  Does it work for the business?  What do you like?  What don’t you like?  What complaints have you received from clients and employees?
  3. You’ve heard of zero-based budgeting-we advocate zero-based space planning.  Start from a blank slate.  What would the office look like?  What activities will occur in the office versus WFH?
  4. Are you client-centric or employee-centric?  It’s nice to say both, but when it comes to deciding where the office should be located, those may be in conflict.  Do a scatter map of where employees live.  What kind of commute are you and they willing to have?  Do another scatter map for clients.  How far are you willing to make them drive if they come to you or for your sales/support people to travel to them?
  5. What image do you want in an office?  Is it there to impress clients?  What about employees?  What amenities will be needed as a result?
  6. What is the budget?
  7. Critical features needed in the lease such as flexibility, term, options, etc.
  8. Create a strategy to executive on this vision.  And number one, would be, of course, hire a seasoned tenant representative to help you!  At REATA, we have a unique process called The 9 Steps to Leasing Your Ideal Office Space.  Through this process we help clients consider all these issues, create a strategy and then implement it.

So once a company considers these steps, the answer of whether to stay and extend their lease or move to a new building will be obvious.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.