While going into the office is on pause, most leases are not, and your company may be facing lease expiration during shelter-in-place. This situation is compounded by uncertainty around future business plans, the end date of shelter-in-place, the inability to physically tour space and even how companies will utilize office space once we can all go back to work.
If your lease is expiring during shelter-in-place, you have options.
Extend Your Lease Short-Term
Given the current situation, it’s going to take a longer time to fill lease vacancies, so landlords may be more accommodating to a short-term extension, ideally month-to-month. You can even request an extension with a flexible start date and decide when to move once you have a better sense of when you’ll be able to go back to the office. Extending your lease short-term can be a win-win for both parties. You’ll be helping minimize moving costs and keep cashflow up for your landlord while keeping your office as is for the time being.
Negotiate a Longer-Term Renewal
If your landlord won’t let you extend your lease short-term and it’s financially viable for your team, you can try to negotiate a longer-term renewal. For the best outcome, you’ll want to have a firm grasp of what you’re trying to accomplish compared to what the landlord’s ultimate goals are. For example, if your landlord is concerned with stabilizing long-term cash flow and you’re concerned with collecting short-term revenue, the best solution may be negotiating a multi-year lease extension with upfront financial incentives. This is just one example though, as there are various scenarios that could be presented on a longer lease renewal.
Commit to a Coworking Space Offering Flexible Membership Terms
If you are positive you are not staying in your current office, consider getting a coworking membership. Many coworking providers are letting companies sign up for a 12-month lease at a discounted rate with a flexible start date. Many providers are even offering 10-30% off commitments made during shelter-in-place. Once everyone is allowed back into their offices, coworking providers are also placing people in bigger offices – for example, you may be able to get a ten-person office for the price of a five-person office. Coworking also allows members to easily scale up or down in office size depending on business needs.
Truss is Here to Help with Your Lease Renewal
Our local brokers can help you figure out what option works best for your company while limiting your financial exposure. If you need to find a new office space quickly, Truss’ platform shows you personalized results based on your requirements and lets you compare pricing across coworking and office spaces. Our virtual tours save you time and let you see a space without visiting it. Our brokers can negotiate the lease on your behalf and get you the best deal – our service comes free of charge. Want to learn more? Book time to talk to our local Truss brokers.
- Chicago: Nicole Weldon, Austin Zimmerman
- Los Angeles: Sam Devorris, Chris Gunderson
- Washington, DC: Cam Kostyack
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