Office space is often one of the largest expenses after payroll, yet many businesses approach lease negotiations without a clear strategy.
The result? Missed savings, reduced flexibility, and unnecessary risk. Here are seven common office leasing mistakes… and how to avoid them.
1. Starting too late
Leaving negotiations until the final months of your lease puts you under pressure and weakens your negotiating position. Starting early gives you time to review the market, compare options, and negotiate properly.
Small to medium office tenants should engage with landlords 12–24 months before expiry to secure better terms and avoid last-minute decisions. For larger occupiers, even more time is needed to evaluate options and manage negotiations.
2. Automatically exercising the renewal option
An option to renew might seem convenient, but it can cost you. Exercising the option often means accepting the landlord’s terms without testing the market, potentially missing incentives like rent-free periods or fit-out contributions.
Even if you intend to stay, renegotiating usually delivers better outcomes.
3. Not creating competitive tension
Negotiations are about leverage. If you only consider your current premises, you’re negotiating from a weak position. Reviewing alternative properties signals to the landlord that you have options, which can lead to better rent and incentives.
Exploring the market doesn’t mean you must move. It simply strengthens your hand.
4. Focusing only on the headline rent
Rent is important, but it’s only part of the deal. Incentives, rent reviews, outgoings, and make-good obligations can significantly affect the true cost of your lease. Even small changes to rent reviews or incentives can add up to tens of thousands over the lease term.
Always evaluate the full financial picture, not just the face rent.
5. Ignoring flexibility for future change
Business needs evolve. Without flexibility – such as expansion rights, break options, or subleasing provisions – you risk being locked into space that no longer suits your business. Flexibility clauses can act like an insurance policy against growth or contraction.
The right lease should support your future strategy, not restrict it.
6. Accepting the “standard lease”
There’s no such thing as a truly standard commercial lease. Even if presented that way, most terms are negotiable, including lease length, rent reviews, maintenance obligations, and incentives.
Accepting the first draft often means accepting terms that favour the landlord.
7. Going it alone
Commercial leasing is complex, involving market research, financial analysis, and legal considerations. Seeking professional advice helps identify risks, negotiate stronger terms, and avoid costly mistakes.
An experienced independent tenant representative can often deliver savings that far outweigh their fee.
Avoiding mistakes
A well-negotiated lease can reduce costs, increase flexibility, and support long-term business growth. Avoiding these seven mistakes puts you in a far stronger position – whether you’re renewing or relocating.
The key is simple: start early, understand your options, and negotiate strategically.
