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Stay or go? How will you know?


It’s amazing how quickly those five years of your office lease term can pass by, it feels like suddenly, (maybe nine months out), the decision has to be made as to whether you stay where you are, typically on an increased rental level, or bite the bullet and see what opportunities await you in the bright new world of the commercial property market.


Now is a good time to take stock of your tenancy situation and weigh up the pro’s and con’s of staying or going, both options having different financial impacts on your on-going business operations.


The Stay Option

Pro’s

  • as a sitting tenant you may be able to negotiate deal sweeteners such as new carpet, re-painting, base building services upgrade or a contribution for any tenancy refurbishment works you may have planned

  • you are happy with your location, transport, suppliers, clients, social activities are known to your staff and clients

  • it is much less expensive to stay put than to relocate

  • you may be able to negotiate with your landlord so you can ‘right-size’, i.e., take up more space or give back space to suit your current and foreseeable space needs, this will require building alteration works

  • little disruption if only minor refurbishment works are proposed


Con’s

  • disruption caused by building works around staff, impact on operations

  • still sitting in the same place, no physical change to support any proposed changes to work methods


The Go Option

Pro’s

  • you have the opportunity to re-invent your workplace and introduce new ways of working supported by a new physical environment

  • usually an incentive is offered by the landlord to offset fitout/relocation or face rents

  • the opportunity to relocate to a location to better support your business and your staff

  • a turn-key relocation can have the move take place over a weekend, no downtime to operations


Con’s

  • costs associated with leases, fitout and relocation

  • make good costs for the existing fitout


Ultimately the decision to move or not comes down to a cost/value decision based on costs, cashflow, and the benefits of creating an energised, organised, fit for purpose workplace as the base for your business.

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