Sometimes moving makes sense. If you outgrew your space, your market changed around you or your office lease is significantly above market, it's probably time to start looking at new options. However, for many companies, the best option is the current one. With that in mind, here are some of the reasons that you might want to stay where you are and look at a renewal instead.
Nothing's Changed
The first reason to keep your current office lease is that your needs haven't changed during its term. Given new trends in technology and in how companies manage their human capital, it's entirely possible that you're either getting more work out of the same number of people or getting more people in the same space. Conversely, your company might be at a place where you aren't going through explosive growth, and your office might be perfect as it is. In either case, if your space still works, staying could be the best option.
Your Space is Unique
Some spaces are hard to replace and are uniquely desirable. If you're in one of those locations and having that type of space is important to your business, you might not be able to move. After all, San Francisco has only one Transamerica Pyramid and there's only one Empire State Building in New York.
Your Option (or Renewal) is a Great Deal
Before making an absolute decision to move, survey the market to see what kind of rent you could end up paying for your new office lease. If you are in a market where rents are growing at a fast rate and you have an option with pre-negotiated increases, you could end up paying significantly less rent if you stay. If you find a dedicated tenant representative broker and are up front with him or her, that broker will let you know quickly if your current office lease represents a good deal.
Even if you don't have an option, you might be able to negotiate a below market renewal rate, especially with a broker's help. Many landlords are focused more on keeping their buildings full than on maximizing their rental income (after all, it's better to be 100 percent full than to get 10 percent more rent with 15 percent of your building empty!). Furthermore, finding a new tenant is expensive for a landlord, and he or she might be willing to share those savings with you.
Moving is Expensive
Finally, even if it looks like going into the market for a new office lease is the best option for you, realize that moving is expensive.
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Finding a new space means that you will probably have to do more tenant improvement work -- unless the landlord's subsidy covers all of the cost.
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You will probably need some new furniture, and many businesses use moves as excuses to update fixtures and office equipment.
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A new location means new stationary, business cards and other related costs.
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In addition to paying for movers to take your business' property to the new location, you're also going to have to deal with some decreased productivity while your employees pare down unnecessary items and pack.
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As if all of this isn't enough cost, you'll also have to pay security deposits and other office lease related expenses.
Unless you're signing a very long office lease, you could find that even significant savings from moving get swallowed up by all of these moving related costs. With this -- and all of the other factors in mind -- staying might just be the best option.
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