With the current volatility in the commercial real estate market, businesses must carefully evaluate landlord offers for new space or a renewal. Here are 10 major factors to be considered prior to reaching a decision.

1. What are your internal requirements?

There may be more than you think. In addition to the more obvious items such as space and rent, many other factors can impact your search for a new office. It’s often helpful to go through a professional checklist and brainstorm with your representatives regarding your current situation as a spur to your memory.

2. What is the geographic location?

Attracting new employees and retaining your current ones often hinges on your access to public transportation and train service as well as your proximity to major highways. In addition, your neighborhood should ideally be safe and relatively prosperous.

3. What are the amenities?

Many buildings include amenities to help retain and attract employees. Fitness centers, day care, cafeterias, train shuttles and covered parking keep people content, safe and offer added convenience to their daily lives.

4. What is your company culture and philosophy?

This item goes beyond ivory-tower considerations. Company culture impacts physical surroundings and vice versa. An established law firm needs a different type of office than a dynamic start-up. An organization with nine-to-five employees requires operational capabilities entirely distinct from a 24/7 company.

5. How flexible is the lease?

Businesses should explore options to expand, contract and especially sublet their space (notably for longer terms). A lease should ideally accommodate business changes based on growth, downsizing or cash flow.

6. Who are the other tenants in the building?

Large corporations may wish to expand into your space in the future. Your building’s vacancy rate may reflect upon operations, market considerations or even the possibility of a discounted deal. And popular tenants with name recognition can attract new occupants.

7. What should you expect from the landlord?

This fundamental question is often neglected by prospective tenants who become absorbed by financial and legal considerations. During the course of your lease, many unexpected issues can arise, and it helps to understand the type and history of landlords, how well they maintain their properties, their relationship with tenants, etc.

8. What are the technical components of the lease?

Every word in your lease may affect your bottom line so pay attention to them all. Many businesses fail to reconsider lease clauses when they are involved in "just a renewal." The renewal process should, instead, be viewed as an opportunity to improve your situation and gain flexibility.

9. What is the condition of the national and local real estate market?

An awareness of market conditions should be obtained on a both a national and local level. The analysis can be conducted even more minutely as well based on the neighborhood or street. As a first step, you should determine whether it’s a tenants’ or landlords’ market and how the commercial real estate industry is trending.

10. Who’s negotiating on my behalf?

Your negotiating team makes all the difference in the world. It should consist of a lawyer, commercial real estate broker and architect at a minimum. Your team can inform you, search for you, advocate on your behalf and much more. Of course, established organizations with experience in representing tenants should be preferred.

This list represents a starting point in the relocation/renewal process. We encourage you to consult with others to help you find the ideal location; it may even be your current one!