When your lease expires, should you renew at the same location or strike out to find new space for your company?

The short answer is "both." Even if you are totally happy with your current space, you need to evaluate the commercial real estate market, if only to create leverage with your current landlord during negotiations.

On the other hand, every good businessperson should explore all options before reaching a final decision, and sometimes, that perfect space is sitting out there just waiting for you to find it.

Still, the debate on renewal versus relocation rages on. Here are a few of the reasons promulgated by both sides.

Renewal

1. Save on moving costs and related expenses.

Obviously, moving to a new location involves a certain amount of upheaval even for the most organized company. Numerous details must be addressed in order to transfer your operations from one location to another, and the expenses can quickly grow.

2. Extract concessions from your landlord to keep you.

If you pay your rent on time, take care of your space and maintain a courteous and respectful attitude towards your neighbors, your landlord will consider you an ideal tenant and will move heaven and earth to keep you. Concessions could include resetting base years for operating expenses, a reduced rental rate, reconstruction dollars or maybe even a reserved parking space!

3. Retain your key employees.

Any relocation will change the commuting logistics of your company’s employees. The move can also serve as a milestone, providing an excuse for talented individuals to look into other options.

4. Make your space better.

After living in an office for several years, you should know what works and what doesn’t. Your landlord may agree to make changes to your space and layout enabling your business to operate more efficiently and increase productivity.

5. Maintain business continuity.

Moving an office and maintaining your operational status without any interruptions may prove critical to keeping that key client who needs your service on an ongoing or emergency basis. While avoidable, disruption of your business continuity can create irreparable damage to your bottom line.

Relocation

1. Take advantage of the current market.

Today’s real estate market offers a wide variety of options -- it’s a buyer’s market. But experienced real estate brokers can find opportunities in any economy.

2. Modify your space to your new reality.

Whether your company has grown or contracted, your needs will have changed during the life of your previous lease, and you may find your current space leaves something to be desired. In a new location, you can start with a clean slate and get tenant improvement dollars to create a customized build out perfect for your new reality.

3. Move closer to your customers.

If the geographical focus of your business has changed, you should consider adapting to it.

4. Improve your building.

Different buildings may offer multiple advantages. These may include conveniences and amenities such as a gourmet cafeteria, covered parking, a fitness center or a shuttle to the train station. Or a new site could support more sophisticated infrastructure with dedicated connections or a backup generator.

5. Start fresh.

There’s something to be said simply for a new start. If you feel your company has become stale, if you’re stuck in an economic rut, or even if you’re just bored, a new physical location can spur your employees and business to renewed success.