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Office Lease Length: How long?

The length of the office lease you are signing for will have a significant impact on the future of your business, so it is important you understand both the benefits and set backs of a long and short term office lease.

Landlords typically prefer longer leases because it provides them with financial security that the building is occupied and their costs are covered, so don't be surprised that if, during office lease negotiations, the prospective landlord tried to persuade to commit to a longer lease term.

Depending on the size and stage of your business you need to decide whether to opt for a short or long term office lease. A long office lease holds both benefits and risks for the average tenant, and you need to weigh up which is best for your long term business plans.

Long Term Office Leases
Long term office leases may suit a more established business who want to grow their presence in a particular building and location and have more financial stability to commit to a longer period. Long office leases offer a predicable cost for the long term and give an established business more stability.

Short Term Office Leases
For start up businesses or SMEs a short term office lease may well be the better option because they are not tied down to the same property for a long time, allowing them flexibility to move offices at the end of the lease when their business may require more space.

The best of both worlds, is of course, a long office lease with break options, allowing the tenant flexibility to review their lease options at specified times within the lease.

If you are unsure about what length of office lease is right for your business, get expert advice from a Tenant Rep Broker. They will also handle your office lease negotiations with the landlord to ensure the lengh of office lease suits your business and operational requirements.

Find a Tenant Rep Broker in your City here to guide you through the office lease process.

 

Planning an office move? Go the office relocation planning resource center

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