Many commercial tenants in the leasing market start their search for new premises without having done sufficient research beforehand, in order to stream-line the search process and provide a clear direction on what they do and don't need when considering a new premises.
Below is a simple checklist to assist tenants in the market on some key points to assess and decide on before embarking on the inspection process for new office premises.
1. Check your existing lease for key terms such as:
- Is there a make good clause and if so, do you need to allow time & budget in order to perform the make good obligation
- Are there any notice periods that may be built in to the lease for automatic exercising option terms or notice periods required to be given to the Landlord if you are vacating the premises
- What condition do you need to handback the premises in? some leases are very specific about replacing carpet and repainting prior to vacating
2. Set yourself a reasonable time frame to complete the relocation process. Industry standards can vary from 12-18 months depending on the size of tenancy. Smaller tenants of less than 250m² can complete the process in 2-4 months.
3. Establish an internal project team and appoint a job captain so there only one person dealing with external service providers for the relocation. This helps to make quick decisions internally
4. Ensure adequate budget planning and revenue forecasts are carried out in order to set rental budgets
5. Carry out head count analysis and space planning, in order to establish exactly how much space you require including growth allowances for longer lease terms of 3-5 years.
6. Understand the expectations of Landlor'd in terms of lease security such as bank guarantees and how these operate and impact your cashflow
7. Do some preliminary budget planning and costings on fitout. (i.e if you need to fitout a tenancy from a bare shell how much per m² will this cost? How much will data cabling cost per m²? Fitout is a large budget item and cost can be substantially high between properties
For expert assistance and advice to ensure a smooth transition and relocation for your business, call us today on 02 9739 9788