Tenant Relocation Austin

Posted by on Oct 22, 2013 in Commercial Real Estate Austin | 0 comments

Tenant relocation Austin

As a tenant there is going to be a time when you are looking to relocate or consider a relocation. This blog is about alternative strategies that may keep you were you are and as a tenant you do not have to relocate in Austin.  When should you first consider relocation?  Commonly, this happens upon your lease expiration.   If as a tenant you are a start up business with no track history and you are looking to lease a warehouse space, there are quite a few things when you first move into a space.  One of the key things for a tenant to think about regarding relocation say from your home to a warehouse or office property, is the question of “Can you stay or move into a commercial real estate space that will not overburden your business?”

Consider changes in Your Business

Consider the changes in your business that may happen within the next 2 years of your occupancy within a warehouse property or office property? This is a critical part when considering the type of property specs that are best for your business.  Considering the operational efficiency of the building is critical in forecasting.  When it comes to relocation , an option in a lease can be drafted that would allow you to renegotiate some time in the future, however depending on the lease market it may be better to lock your lease rates in a weak market with longer lease terms. Buyout provisions can be negotiated based on occupancy within a center , or an out provision.  If a tenant signs an 8 year term with a buyout after 5 years, then technically the lease in the landlord’s mind the lease is 5 years not 8 years.

Other lease considerations will include usage provisions to sublease the space, if it is restrictive in nature it can prevent a tenant from relocation.   Some examples of relocation during the mid term of a lease occurs alot during a merger or acquisition of a business.  Consolidation may cause an Austin relocation because of multiple locations within a close vicinity of the purchased business.   Here is a summary of 5 reasons why a tenant will relocate in Austin

  • Better Rate
  • Better location
  • Up size or Downsize
  • Better Efficiency
  • Want to purchase to own a commercial property

 

 

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