Monday, May 10, 2010

Where did I file that lease?

Here's the scenario: You just realized that your lease will be expiring in a few months and you start to think about what that will mean. For the most part, your current space works for you. You might need more open space or a couple of additional offices; the carpet is starting to show some wear; the walls have been marked up a bit. But, it's close to home and you have a comfort level (the car practically drives itself to the office). what. You didn't get into business to have to worry about this stuff, but now you need to. You decide there is plenty of time to address this and go about doing "more important" things.

At the same time, you begin to notice all of the "Available Space" signs on your way to and from your office. You call one or two of them and discover that although there is a sign in front of the building, there isn't necessarily any space that would suit your operation, but the broker representing the building would be happy to show you other buildings. It then occurs to you that those signs never really come down and that they are really just a lead generation system for the broker.

More time goes by and brokers are calling you every day to pitch you new space or tell you much free rent they can get you. Nobody has really taken the time to evaluate what your business needs are and how they can be aligned with your real estate needs.

It all becomes a little overwhelming and with about 30 days left on your lease, you contact your current landlord and "ask" him if you can renew your lease. He says, "Sure, I'll send you a renewal letter, just sign it and you'll be good for the next 5 years."

Wow, talk about the path of least resistance. You think to yourself, "Done deal". You read it, you notice the part about continued escalations (seems reasonable), you sign it, and it goes back in the drawer for another 4 and a half years.

You, my friend, are a Landlord's dream come true!

I'll tell you why next time. Or, feel free to contact me to discuss.

1 comment:

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