When a company has been in a location for a number of years, factors such as employee turnover and time itself dull the memory of what requirements are in the lease regarding vacating the space the company has outgrown or that has outgrown the company.
In either case, knowing what is in your lease is critical to eliminate costly surprises and to properly generate a budget for your relocation that is achievable.
A company recently relocated who had set a budget of $40,000 hard limit for the relocation. The original lease had not been reviewed and when the property management alerted them to the requirements of vacating the suite, an additional $6,200 in restoration construction took a sizable amount out of their furnishing budget.
Morale to this story:
- Think about any changes or additions to your location before they are actually installed and what impact they will have based on the lease when the location is vacated in the future.
- If there is even a hint of relocation in the air, reread the lease and get any clarifications from your company’s attorney and/or the landlord before a budget is prepared so that any surprises can be exposed early on and budgeted for.
Refer to the article in this blog for “Negotiating a New Lease”.
Call DP Wilder & Company, the construction and relocation sanity company. (408) 440-8393