Stay or Go?
As your lease approaches expiry, there are usually two basic options:
stay and renegotiate the existing lease, or relocate to a new office.
At first glance, staying often appears to be the easier and less expensive solution. There is no relocation to organise, no new office to fit out and considerably less disruption to the organisation.
But this does not necessarily mean that staying is the best business decision.
Likewise, a new office may offer a better location, higher technical standard or more attractive commercial terms — but the cost and operational impact of relocation can significantly change the financial equation.
The right decision requires a proper Stay vs. Go analysis.
What Should You Compare?
A meaningful comparison should go far beyond headline rent.
1. Total Occupancy Cost
Compare the full financial impact of both scenarios, including:
- base rent,
- service charges,
- utilities,
- parking,
- rent indexation,
- fit-out expenditure,
- landlord contributions,
- rent-free periods,
- relocation costs,
- reinstatement costs at the existing premises.
Only then can you compare the two scenarios on a like-for-like basis.
2. Space Requirement
Ask a simple question:
How much office space does your company actually need today — and how much will it need in five years?
Hybrid working, changes in headcount and new workplace models may mean that your existing office is no longer the right size.
Reducing the occupied area by 15–30% can sometimes generate significantly greater savings than negotiating a lower rent per square metre.
3. Location
Location affects much more than rent.
Consider:
- employee commuting times,
- access to public transport,
- availability of parking,
- proximity to clients and business partners,
- access to restaurants and services,
- attractiveness of the location from a recruitment perspective.
A cheaper building is not necessarily a better solution if the location makes it more difficult to attract and retain employees.
4. Building Quality
Technical and environmental standards have changed significantly in recent years.
When comparing your existing building with alternatives, consider:
- HVAC systems,
- energy efficiency,
- ESG credentials and building certifications,
- bicycle infrastructure and changing facilities,
- access control and security,
- quality of common areas,
- building amenities,
- flexibility of office layouts.
An older building may still be highly competitive — but only if its commercial terms adequately reflect the difference in quality.
5. Flexibility
A lease should support your business rather than restrict it.
Important provisions may include:
- expansion rights,
- contraction rights,
- break options,
- subletting rights,
- assignment rights,
- rights of first offer or first refusal on additional space.
These elements may have substantial value even though they do not appear directly in the headline rent.
The Cost of Relocation
One of the most common mistakes in a Stay vs. Go analysis is comparing rental costs while underestimating the actual cost of moving.
A relocation budget may include:
- fit-out of the new premises,
- furniture,
- IT and AV infrastructure,
- physical relocation,
- project management,
- design and technical consultants,
- potential double rent during the transition period,
- reinstatement of the existing premises.
These costs can be significant.
However, landlords competing for a new tenant may offer substantial financial incentives, including fit-out contributions and rent-free periods, which can offset a considerable part of the relocation cost.
The Hidden Cost of Staying
Staying also has a cost.
A tenant who automatically renews its lease without testing the market may lose the opportunity to:
- reduce its office footprint,
- improve workplace quality,
- secure stronger financial incentives,
- negotiate greater flexibility,
- improve the location,
- address technical limitations of the existing building.
There is also another important factor: negotiating leverage.
If your existing landlord knows that you have no realistic alternative, there is little reason to offer you their best commercial terms.
Why You Should Test the Market Even If You Want to Stay
A market search does not mean that you have decided to relocate.
It gives you information.
By approaching selected alternative buildings and obtaining actual proposals, you can establish:
- current market rent levels,
- available incentive packages,
- fit-out contributions,
- service charge levels,
- available office standards,
- the true cost of alternative locations.
This creates a credible BATNA — Best Alternative to a Negotiated Agreement.
And that can fundamentally change the conversation with your existing landlord.
A Simple Stay vs. Go Framework
STAY
Advantages:
- no relocation disruption,
- lower implementation risk,
- limited or no moving costs,
- employees already know the location,
- potentially faster decision-making process.
Potential disadvantages:
- existing technical limitations remain,
- limited ability to redesign the workplace,
- potentially weaker negotiating leverage without market alternatives,
- risk of retaining more space than the organisation actually needs.
GO
Advantages:
- opportunity to optimise office size,
- modern technical and ESG standards,
- new workplace design,
- potentially stronger financial incentives,
- opportunity to improve location and employee experience.
Potential disadvantages:
- fit-out and relocation costs,
- more complex project management,
- organisational disruption,
- longer implementation process.
Neither option is inherently better.
The objective is to identify which one creates greater value for your organisation.
How Does the RE+ Process Work?
Stage 1 — Analyse
We review the existing lease, current occupancy costs, workplace requirements and future business needs.
Stage 2 — Test the Market
We identify realistic alternatives and obtain comparable commercial proposals from selected landlords.
Stage 3 — Build the Business Case
We prepare a financial comparison of the Stay and Go scenarios, including incentives, CAPEX and relocation costs.
Stage 4 — Negotiate
We negotiate in parallel with the existing landlord and selected alternative buildings.
Stage 5 — Decide
Management receives a clear comparison of the available scenarios, their financial impact, benefits and risks.
The final decision is based on evidence rather than assumptions.
When Should You Start?
For most office tenants, a Stay vs. Go analysis should begin approximately 18–24 months before lease expiry.
For larger occupiers — particularly those leasing several thousand square metres — starting 24–36 months in advance may be appropriate.
The key principle is simple:
Do not wait until you have to make a decision. Start while you still have enough time to create alternatives.
Summary
Relocation and renegotiation should not be treated as two separate processes.
They are two competing scenarios within the same decision-making process.
A strong renegotiation requires a credible relocation alternative. And a relocation decision only makes sense when compared with the best terms that can be achieved by staying.
That is why the right question is not:
“Do we want to move?”
It is:
“Which scenario delivers the best business outcome for our company?”