Industrial Lease Expiration Checklist & Considerations
An industrial lease expiration can be daunting for any business. It often prompts several questions that take time and energy to answer. Our team at Cresa has been involved in helping companies answer these questions for over thirty years. To help our partners and clients organize their thoughts, we created the checklist below. Answering these questions can put you on the right track for ensuring your real estate is supporting your business and not inhibiting it.
Can my business continue to operate in this space beyond the expiration date?
Look at your business and see how the space has been working for you and what your employee or production growth plans are for the next 3, 5, 7, or 10+ years. Has the space you’ve been operating in been working for your core business or has it caused internal issues with growth and/or efficiency? Do you find yourself making odd accommodations to fit within the space you currently have leased? It may feel like you are squeezed for space and trying to find short term solutions to accommodate current needs, but these solutions are few and far between or not efficient for the way you run your business.
What length of term can I forecast at this time?
With current growth trajectory, how far out are you able to commit to a space? If you are seeing exponential growth, it may be wiser to take on more space or take on a staged/leveling-up lease in which you take on more space over the course of your lease.
Has my customer base and employee base changed?
Look at where your employees live and where your customers are based. While your location may have been the right choice initially, this could easily have changed. It may be wise to consider a move to retain employees and customers.
Have my delivery and/or lead times been affected by this location?
Based on where you are sending your outputs or receiving your inputs, there may be a more strategic location for your business. It is essential to ensure you are saving time, money, and creating efficiencies by where your real estate is located. That may include moving or even a new satellite office.
Have I consulted with a professional advisor, or have I only connected with the landlord directly?
While you may have negotiated lease terms on your own in the past, you are paying for these services regardless of whether you have representation or not. You should have strong representation to ensure you are receiving the best service and not missing out on key market concessions. As your expert real estate advisors, we will help you plan for your real estate needs and negotiate favorable terms on your behalf so you can focus on running your business.