The Cost of Waiting: How Delayed Lease Decisions Hurt Negotiating Power
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
When it comes to commercial real estate, time isn’t just a scheduling detail, it’s a source of leverage. Yet many tenants begin the lease process too late, only to find themselves facing limited choices, reduced flexibility, and weakened negotiating power. In today’s evolving market, where vacancy trends and landlord motivation can shift quickly, delayed decision-making comes with real financial consequences.
Time = Leverage
Landlords know when a tenant is up against a deadline — and the closer you are to lease expiration, the more leverage shifts away from you. Without time to evaluate alternatives, tenants are often forced into decisions that favor the landlord, such as accepting higher rents, fewer concessions, or longer terms than they need.
Beginning the planning process 12-18 months before expiration gives tenants options, and options create negotiating power. Even if staying in your current space is the plan, demonstrating that you’re informed — and will explore other buildings — keeps the conversation competitive.
Limited Time = Limited Opportunity
A rushed timeline rarely leaves room for what matters most:
Market Benchmarking: Understanding what similar tenants are paying today.
Test Fits + Budget Planning: Confirming the space actually works for your team.
Exploring Concession: TI dollars, free rent, and flexibility often require longer negotiation periods.
Evaluating Multiple Buildings: So, your landlord has to earn your renewal.
Without enough runway, decisions shift from strategic to reactive — and that’s when savings slip through the cracks.
Renewal Deadlines Aren’t Negotiable
One of the most overlooked timing risks is hiding in your lease already:
Most renewal notice clauses require a decision 9-12 months before the lease end.
Tenants who miss that window can unintentionally waive their renewal rights — or get locked into renewal flexibility before the real negotiation even starts.
The Market is Favoring Prepared Tenants
As vacancy increases in select Twin Cities submarkets, landlords are more willing to negotiate — but those benefits are going to tenants who take action early. TI packages, free rent periods, and favorable lease structures take time to secure. The longer a tenant waits, the more of that value disappears.
Today’s smartest occupiers aren’t just signing deals — they’re proactively shaping them.
Lease negotiations shouldn’t start when the countdown is almost over. Waiting reduces leverage, limits choices, and increases cost. Acting early protects your optionality and strengthens every part of the negotiation — whether you’re renewing or exploring a relocation.
Is your lease expiration 12-18 months away? Connect with Rokos Advisors today to benchmark your space options and take control of your timing — before the market does it for you.
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.