Why Smart Tenants Start Their Lease Renewal Process 24 Months Early

Most businesses approach lease renewals like an annual budget review—something to tackle 6-12 months before the deadline. This reactive approach costs money, limits options, and weakens negotiating position. Our proven 24-month methodology has helped numerous professional service firms secure better terms, lower costs, and enhanced flexibility.
Clients who start their lease renewal process 24 months early consistently achieve significantly better results than those who wait until the last minute. Professional firms following our proven methodology regularly save tens of thousands of dollars while securing enhanced terms and greater flexibility. The difference? Strategic timing.
Here’s the step-by-step roadmap that transforms lease renewal from a pressure-filled scramble into a strategic advantage.
Why Timing Equals Savings
Market Dynamics That Favor Early Planning
Starting your lease renewal process 24 months early isn’t just good planning, it’s smart business strategy. Early negotiations signal to landlords that you’re a serious, stable tenant worth retaining. This psychological advantage often translates into more favorable terms before competitive pressures intensify.
Timing also allows you to navigate market cycles effectively. Real estate markets fluctuate seasonally and economically. A 24-month window gives you flexibility to time your renewal during favorable conditions and avoid peak leasing seasons when landlords have maximum leverage.
Quantifiable Benefits of the 24-Month Approach
Our clients who follow this methodology achieve measurable results:
- Average savings of 15-25% on total lease costs compared to last-minute renewals
- Enhanced tenant improvement allowances averaging $15-30 per square foot above standard packages (with recent market data showing allowances now ranging $10-100+ per square foot, depending on market conditions and property type)
- Operating expense caps that protect against unpredictable cost increases
- Flexible terms including expansion options and early termination rights
The risk mitigation alone justifies early planning. Emergency relocations cost 2-3 times more than planned moves, while rushed decisions often overlook critical lease terms that impact long-term costs.
Phase I: Strategic Foundation (24-12 Months Out)
Business Assessment & Future Planning (Months 24-21)
Begin with comprehensive space needs analysis. Project headcount growth, technology requirements, and operational changes over the next lease term. Professional service firms often underestimate growth—accounting for expansion early prevents costly mid-lease modifications.
Establish clear financial parameters including budget ranges, cash flow considerations, and approval processes. This foundation prevents emotion-driven decisions during negotiations and ensures alignment with business objectives.
Market Intelligence Gathering (Months 20-16)
Conduct thorough comparable lease research to understand current market rates and standard concession packages. This data becomes crucial leverage during negotiations—landlords respect tenants who understand market realities.
Simultaneously, identify alternative space options to build a quality pipeline. Even if you prefer staying, having legitimate alternatives strengthens your negotiating position significantly. This process takes time—quality spaces aren’t always immediately available.
Team Assembly & Strategy Development (Months 15-13)
Assemble your professional team including legal counsel, space planners, and experienced tenant representation. Each plays a critical role in different phases, and early engagement ensures coordinated strategy.
Develop comprehensive negotiation strategy identifying leverage points, fallback positions, and deal breakers. Map critical milestones to prevent deadline pressure from forcing suboptimal decisions.
Initial Landlord Engagement (Month 12)
Deliver formal notice of renewal interest through professional communication. This signals serious intent while maintaining negotiating flexibility. Use preliminary discussions to gauge your landlord’s position and renewal likelihood.
Prepare comprehensive documentation including current lease analysis and desired amendments. This professional approach sets the tone for productive negotiations.
Phase II: Implementation & Execution (12-0 Months Out)
Formal Negotiation Launch (Months 12-9)
Submit comprehensive renewal proposal outlining desired terms and conditions. Present market data and alternative options to demonstrate your strong negotiating position.
Focus on developing mutually acceptable term sheets covering key business points before diving into detailed legal documentation. This approach prevents minor issues from derailing major agreements.
Due Diligence & Refinement (Months 8-6)
Conduct thorough building condition assessments to identify capital needs and maintenance responsibilities. Understanding these factors prevents surprise costs and clarifies landlord obligations.
Complete detailed financial modeling analyzing total cost of occupancy including base rent, operating expenses, utilities, and improvement costs. This comprehensive view enables accurate cost comparisons between options.
Final Negotiations & Documentation (Months 5-3)
Maximize concessions including tenant improvement allowances, free rent periods, and operating expense controls. Early planning provides time to negotiate these valuable terms that last-minute renewals often sacrifice.
Address risk allocation through operating expense controls, assignment rights, and future flexibility provisions. These terms protect against unforeseen circumstances and business changes.
Execution & Transition Planning (Months 2-0)
Secure final approvals including board resolutions and partner consensus. Professional firms require time for internal decision-making processes—don’t underestimate this timeline.
Coordinate implementation including construction schedules and moving logistics to minimize business disruption. Proper planning ensures seamless transition.
Critical Success Factors & Common Pitfalls
Professional Representation Advantages
Experienced tenant representation provides significant advantages including deep market knowledge, proven negotiation experience with similar professional firms, and conflict-free advocacy focused exclusively on tenant interests.
Unlike landlord brokers who represent building owners, tenant representatives work solely for you. This alignment ensures recommendations prioritize your interests, not commission maximization. Professional representation can deliver measurable results, with some clients achieving 15% lower rates on renewed space.
Common Mistakes to Avoid
Timing errors remain the biggest pitfall:
- Starting too late limits options and weakens negotiating position
- Missing deadlines can trigger automatic renewal clauses with unfavorable terms
- Rushing decisions leads to inadequate due diligence and overlooked details
Strategic errors that cost money:
- Emotional decision-making based on attachment to current space rather than business logic
- Inadequate market research leading to acceptance of below-market concessions
- Poor professional representation from landlord-influenced or inexperienced advisors
Comprehensive record keeping and stakeholder alignment prevent these mistakes while ensuring informed decision-making throughout the process.
Taking Action Today
Start by evaluating your lease expiration timeline and current market position. Identify your lease end date, available option periods, and current rent compared to market rates.
Consider your business growth projections and space needs over the next 2-3 years. Professional service firms often experience significant changes that impact space requirements.
Mazirow Commercial: Professional Partnership Benefits
Mazirow Commercial offers no-cost consultation including comprehensive lease analysis and market positioning assessment. Our specialized expertise focuses on professional service firms throughout the San Fernando Valley and Conejo Valley.
With 30+ years of local market experience and exclusive focus on tenant advocacy, we understand the unique needs of law firms, accounting practices, and wealth management companies. Our conflict-free representation ensures your interests remain the priority throughout the process.
Don’t wait until deadline pressure forces rushed decisions. Contact Mazirow Commercial today for a complimentary lease analysis and discover how early planning can protect your bottom line while positioning your business for future success.
About Mazirow Commercial Inc.
Trusted tenant representation serving law firms, accounting practices, and wealth management companies throughout Los Angeles and Southern California. With exclusive focus on tenant advocacy and 30+ years of local market expertise, we deliver conflict-free negotiation that protects your bottom line.
Contact Information: Phone: (805) 449-1945
Address: 30700 Russell Ranch Road, Suite 250, Westlake Village, CA 91362
Service Areas: San Fernando Valley & Conejo Valley
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Ready to start saving time, money, and headaches on your commercial lease? Schedule a free consultation today with one of our skilled tenant representation specialists.