Renew or relocate? How to approach your next office lease

Every workplace reaches the same point: the lease is winding down, costs are creeping up, and the space no longer reflects how an organisation works.

Each time, businesses must answer the same questions: do we stay and renegotiate, or relocate? Do we right-size, or plan for growth? Do we commit long-term, or choose a more flexible arrangement? Is this location still right for our people, clients and needs?

As tenant advocates and advisors in the commercial sector, we understand how office leasing decisions shape cost, culture and business performance.

Four tips for a better lease

1. More time, more leverage

Lease expiry defines your negotiating position. The more time you have, the more options you can explore, and the stronger your position in the market.

That time is often underestimated. Finding space, negotiating terms, completing design, running a tender, and delivering a fitout can take 12 months or more. Make-good obligations can extend the process by a further 2–3 months.

Tip: Give yourself enough time to compare options before lease expiry limits your choices.

2. Strong incentives, future constraints

The lease term directly impacts the deal you can secure. The longer you commit, the more incentive a landlord is likely to offer.

Strong landlord incentives can help fund a fitout and reduce upfront capital, but the trade-off is flexibility. As your business grows and its needs change, will the short-term benefit still justify the longer-term constraint?

Tip: Choose a lease term that balances today's costs with tomorrow’s business needs.

3. Plan for patterns

When planning your space, headcount is only the starting point. The real answer lies in the patterns across your teams:

• Are they mostly in the office, or moving between different work locations?
• Do they mainly work at desks, or shift between areas depending on the task?
• Which spaces do they choose for collaboration, meetings and focused work?

Getting this wrong can mean paying for underused areas, while leaving your teams without the right environment to perform.

Tip: Design for how your people work day to day.

4. Location, location, location

Different locations offer different benefits. CBD offices provide convenient access to transport links, clients and industry networks, and the amenities that people value around their workday.

Depending on where your people are based, decentralised locations can improve accessibility while reducing occupancy costs.

The right choice depends on where your people are coming from, who they need to connect with and what the business can afford.

Tip: Choose a location that balances access, connection and cost.

Clarity at the intersection of choice

Leasing decisions never come down to a single factor. They sit at the intersection of timing, cost, flexibility, how your people work and move, and where your business is heading.

Whether you’re weighing up a longer lease with stronger incentives, or deciding between Premium and A Grade space, the right leasing advisor is often the difference between a deal that looks good on paper, and a workplace that supports your people, clients, and business as it grows.

As an independent tenant advocate, TSA Riley represents tenants’ interests alone. We help you define what your next workplace needs to achieve, test what the market can offer and negotiate the right deal.

If you’re ready to explore what your next workplace could look like, please get in touch.