Term Check · free

Should you renew for ten years again?

A longer lease term can come with a lower rent. But if your business has changed since you signed your current lease, you may be paying for space you no longer need.

Term Check compares renewing for the full term on your current space with taking a shorter renewal and moving into a smaller space later, over the same number of years, so you can see whether the lower rate is actually worth keeping the extra space. If your lease has an early termination right, or you might ask for one, you can add that as a third option.

Start with the few figures you know; everything else is optional. Every figure comes from what you enter. Term Check does not use market data or make a recommendation. The assumptions that can change the result are clearly marked, and the results show you how much each one would need to change before the outcome changes.

Example figures are filled in so you can see how it works. Replace them with yours.

Everything is calculated in your browser. Nothing you enter is sent to us or stored.

Your space today

How much space you have now, and how much you actually use.

Current area

sq ft

People in the office on a typical day

Not your total headcount. Enter the number of people who are actually in the office on a normal day.

Area you think you actually needYour assumption

sq ft

Your estimate of the space your business needs today. As a general planning guide, conventional office layouts often use 150 to 250 sq ft per person. Hybrid teams may need less.

The two renewals you're weighing

Enter the terms you're offered or expect. A shorter term often comes with a higher rent.

Long renewal: term

years

Long renewal: rent, year 1

$/sq ft/yr

Short renewal: term

years

Short renewal: rent, year 1

$/sq ft/yr

My rent is gross: operating costs are already included in itLeave this off if you pay operating costs on top of base rent. Those are $14/sq ft/yr under Fine-tune.

Add Scenario C: a long renewal with an early exitKeeps the long renewal's rent and incentives, then uses a termination right to leave early and move into the space you need. Turn this on if your lease has an early termination right, or you're thinking of asking for one.

What the numbers show

Under your assumptions, Scenario B (a shorter renewal, then moving to the space you need) appears to cost the least over 10 years, about $247,007 less than the next option.

Compares cost only. Location, disruption and flexibility are yours to weigh.

Space per person

357sq ft

per person today

250sq ft

per person at the area you say you need

Renewing for 10 years on the full 5,000 sq ft would put about $640,483 of the total cost toward the 1,500 sq ft you say you do not need.

Total cost over 10 years, under your assumptions

ARenew for 10 years on 5,000 sq ft
$2,134,943
Lower rate, full space for the entire term.
$213,494 per year on average
BRenew for 3 years, then move to 3,500 sq ft
$1,887,936
You pay a higher rate for the first few years, then reduce your costs by moving into the amount of space you actually need.
$188,794 per year on average · $247,007 less than ALowest total cost

What would have to change for B to stop beating A?

Under your assumptions, B costs $247,007 less than A over 10 years.

B stops costing less if rent on the smaller space is more than $39.21/sq ft in year 4. You assumed $30.00.
B stops costing less if moving and fit-out cost more than $95.57/sq ft, or $334,507 in total. You assumed $25.00/sq ft.

The part this calculator cannot see

Whether you can shorten your term, reduce your space, or leave early depends on what your lease actually allows. A lease review can identify provisions dealing with renewal terms, termination rights, contraction, assignment, and other options. It can show you what rights you already have and what you may want to negotiate. The first preview is free and needs no account.

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