What happens at the end of a lease?

Facing an upcoming lease event? They say a change is as good as a rest, and it might be time for your company to make that change. Whether that’s moving to a new location, or a redesign of your existing workspace, you should always look at a lease event as an opportunity.

Here’s everything you need to know if you’re coming to the end of a lease.

1. Consider your timeline

Getting your timing right for the key events leading up to a lease end is essential if you want to make the process as smooth as possible. The first thing you should do is plan ahead, and this simple timeline will guide you in the process.

There’s another important time marker to think about here. If you’re moving (or if you’re staying and re-imagining your space), you want to start the design and fit-out process about five months before your move. Things like statutory consents or procuring costs for fit-out and furniture can take more time that you might realise. For example, obtaining statutory consents for warrantable works can take 6-8 weeks! You don’t want any aspect of your move or refit to be rushed so it’s best to be prepared well in advance.

2. Think about how much it will cost

In business, every penny is a prisoner, and you should weigh up current landlord incentives to stay against proposed landlord incentives to move – potentially trading one off the other. Think about what a move or making changes costs in terms of new fit-out, or removals, but don’t forget your people on this journey. You need to take into account the human costs in terms of stress involved with any big change need and whether a relocation will impact retention and recruitment. Also, if you’re moving, don’t forget about dilapidations – a cost often overlooked, but one where your agent will be able to advise and guide you.

3. Account for sustainability – always

Relocating or redesigning is the perfect time to consider your company’s sustainability goals. We know that 40% of the UK’s carbon footprint comes from the construction industry. Can you apply the Circular Economy’s approach of ‘reduce, reuse, recycle’ in your current space or new location? Think about what your landlord is offering in terms of refurbishing and if your space will meet the 2030 EPC requirements.

4. Make sure it’s the best location for your business

Location, location, location – it isn’t said three times for nothing! This is obviously a vitally important consideration; however, market access might not be as critical now that digital collaboration is proving to be so versatile. Hybrid working is here to stay, but that doesn’t mean we can overlook location. It’s still important to seek out somewhere that is convenient, easily accessible, and appealing to staff – current and future – as time in the office is still a big part of many businesses.