Is it more beneficial to renegotiate your current lease or relocate to new premises? Here’s a step-by-step guide to help you make the right decision.
Renegotiating a lease or relocating your office can significantly impact your costs, employee satisfaction, and overall efficiency. A structured process gives you the insights needed to make well-informed decisions—and the opportunity to secure more favorable terms. In this article, we walk you through the key considerations whether you choose to stay or move.
1. Assemble a strong project team
Start by forming an internal project group responsible for managing the process. Include key personnel from leadership, finance, and possibly HR or IT—ideally someone with experience in similar processes. A well-composed team ensures efficient progress and sound decisions.
2. Assess your needs and define a clear mandate
Before contacting your landlord or looking for new premises, clarify your actual needs. Ask questions such as:
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How many employees will the space need to accommodate in the coming years?
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How do you work today—and how do you want to work in the future?
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What are your requirements for location, amenities, and technical standards?
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What is a realistic budget?
By using tools like Statistics Norway’s price calculator and market data from Spacefinder, you can assess how competitive your current lease is and what other options the market has to offer.
3. Research the market thoroughly
Next, identify suitable office spaces that match your needs and budget. Use search platforms like Spacefinder, reach out to landlords directly, and consult brokers with local market knowledge. Your goal is to gain a comprehensive overview of what’s available—and at what price.
4. Conduct site visits
Shortlist relevant properties and plan viewings. We recommend visiting 5–10 alternatives to build a solid basis for comparison. This gives you a better understanding of layout, condition, and potential adaptations.
5. Request detailed and comparable offers
After the viewings, narrow down to 2–3 preferred options. Request written proposals where landlords are asked to respond to your specific requirements—both in terms of layout, technical specifications, and financial terms. A clear specification ensures the offers can be compared on equal terms.
6. Use competition to negotiate better terms
With several comparable offers on hand, you’re in a stronger negotiating position. This can lead to better rent terms, free adaptations, rent-free periods, or other incentives—whether you renegotiate with your current landlord or sign a new lease elsewhere.
7. Plan the moving process carefully
If you decide to move, it’s crucial to have a detailed relocation plan. Good coordination ensures a smooth transition with minimal disruption to daily operations.
Frequently Asked Questions (FAQ)
1. When should we start the renegotiation or relocation process?
Ideally, 12–18 months before your current lease expires. This gives you enough time for analysis, negotiations, and moving if necessary.
2. How do we know if renegotiation is better than moving?
Compare your current lease with market rates, and assess whether the space still fits your needs. Often, evaluating total cost and flexibility will point to the best option.
3. How much does it cost to hire an advisor for the process?
Fees vary, but many advisors offer performance-based models. A qualified advisor can often secure better terms than you could negotiate on your own.
4. What kind of incentives can we negotiate with a landlord?
Common incentives include lower rent, rent-free periods, fit-out contributions, or upgrades. The more competitive the market, the stronger your position.
5. What are the risks of relocating to a new office?
Moving can incur costs and temporary disruptions, but with proper planning, it often leads to better functionality and higher employee satisfaction in the long run.
About the Author
This article was written by Lauritz Kittelsen, advisor at Spacefinder. He specializes in tenant advisory services and helps small and medium-sized businesses find or lease out office space.