The Risk of Ignoring Lease Deadlines: Why Timing Is Everything
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
Lease renewals often sneak up on companies. It’s easy to see a date that’s a year or two away and assume there’s plenty of time. But in commercial real estate, waiting too long is one of the costliest mistakes a business can make.
A lease deadline isn’t just a calendar event — it’s a strategic moment that can determine whether you end up with flexibility, leverage, and savings, or with limited options and higher costs.
Why Starting Early Matters
The market moves slowly. Securing a new space, negotiating terms, completing design work, and managing buildouts can take twelve to eighteen months — sometimes longer. If you only start planning six months before your lease ends, you may find that the space you need isn’t available, construction timelines don’t line up, or the landlord realizes you have no real alternative but to renew.
Landlords count on this. When they know you’re pressed for time, they don’t have to offer the same concessions or competitive terms they would if you had options on the table.
The Cost of Last-Minute Decisions
When a lease deadline is treated as an afterthought, businesses often end up renewing simply to avoid disruption — even if the space no longer fits their needs. The decision can lock you into:
Higher rents than the current market would dictate
Outdated layouts that no longer support your team’s work style
Limited or no tenant improvement dollars to refresh your space
Operating expenses that creep higher year after year
The true cost isn’t just financial — it’s also the missed opportunity to align your space with your business strategy.
Deadlines as Strategic Opportunities
Handled correctly, a lease expiration is less a risk and more an opportunity. Starting early allows you to survey the market, test-fit new layouts, evaluate whether your footprint still makes sense, and most importantly, negotiate from a position of strength. Even if you prefer to stay in your current space, showing your landlord that you are actively evaluating alternatives creates leverage. That leverage often leads to more favorable renewal terms, better concessions, or flexibility clauses that protect your business down the road.
Lease deadlines are not just administrative markers — they are inflection points that can shape your company’s financial health and operational flexibility for years. Businesses that plan ahead turn renewals into opportunities. Businesses that wait too long often find themselves paying more for less.
Is your lease expiration on the horizon? Connect with Rokos Advisors today to make sure the timelines works in your favor.
Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.