A forthcoming lease expiry or break option presents an important decision for any commercial tenant:

Should you remain in your current premises and negotiate a new lease, or relocate to a property that better supports your future plans?

The right decision will depend on your operational requirements, financial objectives, growth plans and the availability of suitable properties in the market.

Starting the process early gives you more time to assess both options, understand your negotiating position and avoid making a rushed commitment.

Option 1: Stay and Renew
Remaining in your current premises may provide greater continuity and avoid the operational disruption and costs associated with relocating.

However, renewing should not simply mean accepting your landlord’s proposed terms.

Before renewing, consider:

• Does the property still meet your current and future business needs?
• Is the proposed rent supported by current market evidence?
• Could you negotiate a rent-free period, reduced rent or other incentives?
• Are changes required to the space or lease terms?
• Do you have an upcoming break option that could strengthen your negotiating position?
• What liabilities or obligations will continue under the new lease?

How Hanway Commercial can support you

We begin by understanding your property requirements, business objectives and future plans.

We then:

• Assess whether remaining in the property is the right commercial decision.
• Carry out a detailed market appraisal to establish an appropriate rental level.
• Review comparable properties and current market incentives.
• Negotiate with your existing landlord on rent-free/rent reductions and best possible terms.
• Use an upcoming lease break or potential relocation to strengthen your position.

Opening discussions early can create more negotiating options. In some circumstances, a landlord may offer improved terms or a rent-free period in return for certainty that a tenant will remain.

Option 2: Go and Relocate

Relocation may provide an opportunity to reduce costs, improve operational efficiency or move into premises that better reflect your business’s future requirements.

It can also provide valuable market evidence when negotiating with your existing landlord.

Before relocating, consider:

• How much space does the business currently require?
• Is the business likely to grow, consolidate or change its working model?
• Which locations best support employees, customers and operations?
• What are the total costs of occupation, not just the headline rent?
• What fit-out, moving and professional costs will be involved?
• What are your repairing and reinstatement obligations at the existing property?
• Are there conditions attached to exercising your lease break?

How Hanway Commercial can support you

Following an assessment of your requirements, we can:

• Define a clear property search brief.
• Identify suitable available properties.
• Arrange inspections and compare shortlisted options.
• Assess rents, business rates, service charges and wider occupancy costs.
• Negotiate lease terms, rent and incentive packages with landlords.
• Review your existing lease to identify break conditions and potential liabilities.
• Help you understand possible dilapidations and reinstatement obligations.
• Use credible relocation options to support negotiations with your current landlord.

A genuine relocation strategy can provide important leverage. When your landlord understands that suitable alternatives are available, they may be more willing to improve their renewal proposal.

Do not consider each option in isolation

The strongest strategy is often to explore renewal and relocation at the same time.

Reviewing the market allows you to compare your landlord’s proposal against genuine alternatives. It also reduces the risk of losing negotiating power as your lease expiry or break date approaches.

Even if remaining on the property is your preferred outcome, understanding the relocation market can help you determine whether the renewal terms offer good value.

When should you start?

Commercial tenants should ideally begin reviewing their options 12 to 24 months before a lease expiry or break date, depending on the size and complexity of their property requirement.

Starting early allows time to:

• Review your lease and key dates.
• Establish your future property requirements.
• Understand current market conditions.
• Assess renewal and relocation options.
• Negotiate from a position of strength.
• Plan for legal work, fit-out requirements and any potential move.
• Leaving the decision too late can limit your choices and weaken your negotiating position.
• Make your next lease decision with confidence
• Whether you choose to remain in your current premises or relocate, your decision should be supported by clear objectives, reliable market evidence and a carefully planned negotiation strategy.

Hanway Commercial advises tenants throughout the property lifecycle, helping businesses assess their options, manage risk and secure terms that support their commercial objectives.

Have a lease expiry or break option approaching?

Speak to our team at info@hanwaycommercial.com before discussing your landlord with them.