Depending on who you ask, the financial crisis is a) over; b) easing; or c) lingering like a hangover, soon to be written off with a smile as ‘that time we all got drunk on credit’. But if a) or b) turn out to be the right call, it’s not all good news. Because time is now running out on a GFC deal.
Amid all the doom and gloom, there are actually a few perks lurking about in the GFC, cracking office rental deals being one of them. We recently moved offices, and discovered that the prevailing low confidence gave us way higher negotiating power than usual. So if you’re thinking about a move or are about to extend your lease, now’s the time to push for a deal while the competition is low.
Even better, we were able to negotiate longer-term pricing clauses, leveraging the current low base cost, so the benefit isn’t just until the market rebounds. By locking in a maximum price increase for several years, rather than the usual ‘market review’ type clause, we’ve secured a long-term rental reduction from the present economic woes. In a couple of years, if things turn out to have picked up, we’ll be paying well below market rental.
So if you’re in the market for a new office lease, enjoy your negotiating power while it lasts!