When To Start Your Space Search — And Why Most Companies Start Too Late

The Timeline Problem

Most companies begin thinking seriously about their office or industrial space somewhere between three and six months before their lease expires. In a slow market with high vacancy, that might be enough. In most markets, most of the time, it isn't — and even in a soft market, starting late costs you money.

Here's why: commercial real estate transactions take time. Finding the right space takes time. Negotiating a deal takes time. Getting a lease drafted, reviewed by attorneys, and executed takes time. If you're doing any kind of build-out — which virtually every office tenant and many industrial tenants are — construction takes time. And then you need time to actually move.

Compress any part of that sequence, and you either run out of runway on your current lease, or you accept whatever deal is in front of you because you can't afford to keep negotiating.

The Right Timeline for Office Tenants

For most office tenants, the rule of thumb is to start the process 12 to 18 months before your lease expiration. Here's what that timeline actually looks like when you map it out:

Months 12–18 out: Engage your tenant rep broker. Define your space program and requirements. Begin market survey. Identify initial options.

Months 9–12 out: Tour properties. Narrow to a shortlist. Issue RFPs to landlords on target spaces.

Months 6–9 out: Receive and compare proposals. Negotiate deal terms. Select a space and execute the LOI.

Months 4–6 out: Lease drafting and legal review. Finalize the deal.

Months 2–4 out: Construction begins. Permit applications filed.

Months 0–2 out: Construction completes. Move-in. Transition.

Notice how even in that generous timeline, there's not much slack. A construction delay, a difficult landlord negotiation, or a lease that requires multiple rounds of legal review can easily push you right to the edge of your current lease — or past it.

The Right Timeline for Industrial Tenants

Industrial tenants who are relocating, growing into a new facility, or dealing with build-out of office components should use the same 12 to 18-month framework. For larger industrial requirements — above 50,000 square feet — 18 to 24 months is appropriate, particularly in markets with tight industrial vacancy where options are limited and build-to-suit conversations need time to develop.

For tenants with significant infrastructure requirements — heavy electrical upgrades, specialized HVAC, custom dock configurations — add extra time. Permitting and construction for complex industrial build-outs routinely take four to six months or longer.

Why Renewal Timelines Are Just as Important

Here's a common misconception: if you're planning to renew your lease rather than move, you don't need to start as early. This is wrong, and believing it is one of the most expensive mistakes a tenant can make.

Your renewal negotiation is only as strong as your willingness to walk away. Landlords know this. If your broker calls the landlord at 90 days out asking to renew, the landlord's team immediately calculates how much runway you have. If the answer is "not much," your leverage has just evaporated. The landlord has very little incentive to offer you market-rate concessions when staying put is your only realistic option.

Starting your renewal process 12 to 18 months out gives you time to genuinely evaluate the market, tour competitive alternatives, and use real competing options — not hypothetical ones — as leverage in your renewal negotiation. Landlords negotiate differently when they believe you might actually leave.

What Happens When You Wait Too Long

If you find yourself with less than six months on your lease and no deal in place, you're not without options — but every option is more expensive and more stressful than it should be.

You may find yourself in holdover, paying 125% to 150% of your current rent month-to-month with no stability. You may have to accept suboptimal space because the better option requires a build-out that can't be completed in time. You may sign a renewal at above-market rent because you couldn't credibly threaten to leave. You may be forced into a short-term extension at unfavorable terms while you continue searching.

None of this is catastrophic. Brokers deal with compressed timelines regularly. But every one of those scenarios costs real money — money that could have been avoided with earlier planning.

Triggers That Should Prompt Immediate Action

Beyond the calendar countdown, certain business events should prompt you to start a real estate conversation immediately regardless of where you are in your lease term:

• Significant headcount growth or reduction — your current space may no longer be the right size
• An acquisition or merger — multiple leases may need to be consolidated
• A new market entry — you need space in a city where you've never operated
• A major operational change — new equipment, new processes, or new logistics requirements that your current space can't support
• A building sale — when your building changes ownership, your lease is unaffected, but the new landlord's priorities may differ significantly from those of the prior owner

In any of these situations, waiting for the calendar to tell you it's time is the wrong approach.

The Simple Ask

Put your lease expiration date in your calendar right now. Count back 18 months from that date. If that date has already passed, call a broker today. If it hasn't, set a reminder for that date and protect your timeline.

The companies that get the best real estate deals aren't necessarily the largest or the most sophisticated. They're the ones who started early enough to have real leverage when it mattered.