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The Case for Signing Before Christmas

The end of the year is often seen as a period of slowdown, with holiday parties and vacation plans taking center stage. However, for businesses in the market looking for a new office, this can be a golden opportunity. Let’s explore the signing lease in December advantages.

• Capitalize on Year-End Urgency

For many landlords and property managers, the calendar is more than just a measure of time, it’s a driver of financial performance. They operate on annual budgets and performance metrics. An empty space on their books as December 31st approaches represents a missed revenue target.

This urgency can shift the negotiating power in your favor. Landlords may be more motivated to close a deal quickly, making them more receptive to your terms. This is the prime time to find significant lease incentives at year-end, as property owners look to secure occupancy and end their fiscal year on a high note.

• Less Competition from Other Tenants

While you’re strategically hunting for a new space, many of your potential competitors (for space) are likely distracted by the holiday rush. This reduction in market activity means you face fewer rival bids on desirable properties.

With less competition, you have more time to thoughtfully evaluate your options without the pressure of another company swooping in. This allows for more thorough due diligence and a stronger negotiating position.  The process of leasing in December tends to get smoother as you could become the landlord’s top priority.

• Lock in Rates Before the New Year Bump

The commercial real estate market often experiences a reset in January. With the start of a new fiscal year, landlords may introduce new, potentially higher, rental rates. By signing your office lease before Christmas, you can lock in the current year’s pricing, protecting your business from potential price hikes. This foresight provides budget certainty and can result in significant long-term savings.

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The Argument for Waiting Until the New Year

While the end-of-year push has its perks, waiting until January also presents a unique set of opportunities. The fresh start of the New Year brings new energy to the market.

• A Wider Selection of Inventory

January often sees a fresh wave of inventory hit the market. Companies whose leases expire at the end of the year will have vacated their spaces, creating new availability. If your priority is having the widest possible selection to choose from, waiting until the New Year might be the best strategy.

This influx of options can make it easier to find a space that perfectly matches your unique requirements, from square footage and layout to location and amenities. When is the best month to lease an office if variety is your goal? January is a strong contender.

• More Time for Strategic Planning

The holiday season can be a hectic time for any business. Attempting to manage lease negotiations, legal reviews, and strategic planning amidst this chaos can be challenging. Postponing your search until January allows your team to focus fully on the task at hand without the distraction of the holiday season.

This dedicated time ensures that you can develop a clear, comprehensive real estate strategy, align all stakeholders, and enter negotiations with a well-defined vision and set of goals.

• The Disadvantages of a January Start

However, there are also signing lease in January disadvantages to consider. The surge in market activity means you’ll be dealing with increased competition from other businesses who also decided to wait. This can lead to bidding wars and reduce your negotiating leverage.

Additionally, landlords may be less flexible in the New Year. With a full 12 months ahead of them to fill vacancies, the year-end urgency is gone. They may hold firm on asking prices and be less willing to offer the generous lease incentives that were available just weeks before.