Two years ago, Virginia (not her real name) contacted me to help her find a new location for her business currently located in the Garment District. She had an issue which we can all understand.
Your lease is expiring and you are focused on running your business. Real estate is one of your largest expenses. This an opportunity to improve your bottom line as well as morale. Should you renew or move?
It takes time to move space and as a tenant, time can be your biggest asset or your biggest liability... so make sure you have enough of it!
We are pleased to present the first installment of G.E. Grace's commercial real estate video series!
For tenants, renewing your current space or relocating within your building is often a better solution than moving. By remaining, you don't change commuting patterns, eating haunts or local neighborhood services, etc. Unfortunately, landlords have a name for tenants who negotiate their own renewal: "captured" tenants. This implies that they are virtually guaranteed to pay more for their space than a new tenant moving in.
Landlords know exactly what it would cost for a tenant to move and the natural resistance for tenants to make such a move. With these assumptions firmly implanted in their heads, landlords will extract the highest rent possible from you. Our job, at G.E. Grace, is to dislodge those notions.