Many companies successfully negotiate better terms on an office lease – but your ability to do this depends on several factors. Here are some pointers to help guide your strategy.
Timing is everything
Technically, you can try to negotiate better commercial terms on your office lease at any point, but as the saying goes: it takes two to tango. If you’ve only recently signed your lease or there are years remaining, your landlord may simply refuse to revisit the agreement.
However, if you have a break clause or lease expiry approaching, that’s often your window of opportunity. In our experience, it’s well worth opening a discussion well before your lease ends.
If the market is strong and demand is high, landlords are less likely to offer better terms. But in a weaker market, they may be more open to negotiation in order to retain you.
Understand your market position
To negotiate better terms on an office lease, you need to understand the current demand for space like yours in your area.
Ask yourself:
- Is there strong demand for offices of your size and type?
- Would your landlord face a long void period if you moved out?
If tenant demand is high, your scope for negotiating better terms on your lease may be limited. But if demand is low, you may be in a strong position.
Know your landlord’s costs and incentives
The more you understand the costs your landlord would face if you vacated, the better your negotiating position on your office lease. Consider:
- How long would it take them to re-let the space?
- What rent could they realistically achieve?
- What would they spend on legal fees, marketing, and agents?
- Would they need to refurbish or fit out the office?
- Would they be liable for empty business rates?
- What incentives (e.g. rent-free periods) would they offer a new tenant?
If these costs add up, retaining you on slightly better terms may be in their best interest.
Offer something in return
Landlords often respond favourably to longer commitments. If your business is stable, offering to extend your lease term could be a valuable bargaining chip. But tread carefully – a longer lease may bring long-term liability. Always weigh up the risks of needing to exit early.
Top commercial terms worth negotiating
Here are 10 common office lease terms businesses often look to optimise:
- Reduced annual rent
- Rent-free periods
- Flexibility to break the lease
- Capped service charges
- Limited repairing obligations
- Landlord-funded fit out
- Landlord-supplied furniture
- Included amenities (e.g. shared cafés, showers, bike storage)
- Avoidance of rent reviews
- Business rates review or challenge
Note: Some terms may conflict. For example, landlords rarely offer long rent-free periods on short-term, flexible leases.
Get professional advice to negotiate better terms on an office lease
Landlords, especially institutional ones, tend to be well advised. To level the playing field, we strongly recommend working with an experienced office agent. They can help you benchmark similar deals, present your case, and get the most from negotiations.
Final thought – it pays to ask
Whether you’re facing a break clause, lease expiry, or just wondering if you’re paying too much, it’s worth exploring whether you can negotiate better terms on an office lease. You might be surprised at what’s possible – especially with the right advice.
This is just one piece of the puzzle. We’re constantly answering the most important office search questions. See what else we’ve covered and what’s coming next.
For more essential tips and advice, have a look at The Knowledge - and for answers to your questions about London office space, check out our FAQs.
Ian Kitchener
Ian has advised Central London office occupiers for over 20 years - fighting their corner and making sure they get a great office on the best terms. He has a diverse client following, often working with creative companies.