Oftentimes tenants overlook the Relocation Clause when they are negotiating their lease. This isn’t a good strategy these days. As office occupancy continues to improve, landlords are using the relocation clause more frequently to accommodate new or growing tenants to the dismay of their neighbors. I have worked on both ends of a relocation situation and no matter what; it is always a pain for the relocated tenant. The question becomes how big or minor that pain can be.
Here are some key points to consider before you sign your lease:
• Ask to have that clause removed. Some landlords will strike that clause, particularly when you are a large tenant for them. However, if you are smaller and your neighbor is larger, the odds are against you.
• If you cannot get the clause deleted from your lease, attempt to mitigate it. If you have a great view or lobby exposure or some other unique feature to your office, make sure that the landlord has to give you the same thing in your new space.
• Make sure that it is clearly indicated that the landlord must pay for all of your relocation expenses. These expenses include the physical move as well as your cabling/wiring for IT and printed materials.
• Stretch out the amount of time the landlord will provide you for your relocation. If you are an accountant or have a peak season in your business, make sure that the relocation cannot occur in that window.
These are just a few points I can help you with when I negotiate your lease for you. Currently one of my oldest clients is being relocated and I have been walking through the process with them, advocating on their behalf. It is a big inconvenience for them; however, I have found some ways for them to save money on their lease for the remainder of their term. Sometimes there is a silver lining in that cloud.
If you need help with your lease renewal or locating a new office, please contact me. I would welcome the opportunity to assist you.