Article | Adaptive Spaces
Why Sign a 3/6/9, 6/9, or 9-Year Firm Lease for Your Office Space?
When it comes to renting office space, the choice of lease duration is crucial. 3/6/9, 6/9, or 9-year firm leases offer considerable advantages that deserve close examination. Here’s why opting for a longer duration can be beneficial, along with the various incentives available.
June 10, 2025 6 Minute Read
More attractive incentives with a longer duration
One of the main advantages of signing a long-term office lease is access to more attractive financial incentives. Generally, the longer the lease duration, the more landlords are willing to offer significant benefits to attract tenants. These incentives can take several forms, including:
- Capex budget: this allows tenants to partially fit out the office space, such as installing carpets or creating partitions.
- Rent-free months are also offered to the tenant depending on the lease duration. The longer the commitment, the more rent-free months you get. Although common charges and taxes remain due during this period, this can represent significant savings for businesses.
Differences between new and old buildings
It is important to note that the incentives offered vary depending on the age of the office building. New buildings, due to their strong demand and low vacancy rates (less than 1%), tend to offer less aggressive terms. Owners of these spaces may be less inclined to negotiate significant incentives, knowing that there is a high demand for their properties.
In contrast, older buildings, which may require more renovation work, are often more flexible in terms of incentives. Owners of these spaces may be eager to fill their vacant units and are therefore more likely to propose attractive offers.
Amortising renovation costs
With rising renovation costs, tenants tend to sign 6-year firm office leases. This allows businesses to amortise the costs of renovations over a longer period, making the initial investment more viable.
Termination options and flexibility
Another aspect to consider when signing a lease is the presence of termination options. Some businesses may need flexibility to adapt to market changes or expansion needs. 3/6/9 leases often offer termination options at specific times, which can be a considerable advantage for tenants.
If a tenant is looking for even more flexibility regarding the lease duration, private offices in business centres can be a good option.
Conclusion
In summary, signing a 3/6/9, 6/9, or 9-year firm office lease can offer numerous advantages, including interesting financial incentives, the possibility of customised improvements, and financial stability. It is essential to carefully evaluate the available options and consider the specifics of the building to make an informed decision. Ultimately, a well-negotiated lease can contribute to the long-term success of your business.
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