Missed opportunities at the end of the lease term when renting office space

● 4 March 2025

When do you take action at the end of your lease term?

● 4 March 2025

When you want to rent office space in Amsterdam or Rotterdam, you often have leases with five-year terms. If you (or your landlord) don’t cancel, the contract will automatically renew under the then-current terms. Few companies choose to relocate every five years. Our research shows that the average office tenant stays in the same location for 17 years. Nevertheless, there are important steps to take when your lease ends. Unfortunately, many tenants don’t take advantage of this opportunity, leading to missed opportunities.

The Theory

Most lease contracts include a notice period, typically 12 months. This means you need to assess well in advance whether your current office space still meets your needs, whether the rental terms are market-compliant, and whether you have a plan for the next five to ten years. Especially if the landlord can also terminate the contract, you don’t want to be surprised by an unpleasant letter.

Renting office space in practice

In practice, however, many tenants are unaware of the end date of their lease term or take action too late. This sometimes leads to unpleasant surprises from the landlord or missed opportunities to save costs. When a lease term ends, you have two options: move or stay. In this article, we’ll give you tips for both choices.

Move or stay?

That’s the big question. How do you make this decision? Sometimes the answer is obvious, and you have a clear vision of what your accommodation should look like. But often, it requires careful analysis. Our main tip: start early. Ideally, start thinking about the future of your office space two years before the end of your lease term.

If moving is an option, you will need that time to create a program of requirements, conduct market research, negotiate contracts, and carry out any renovations. Even if you plan to stay, it’s important to evaluate your current office space and especially the lease agreement, and to make changes if necessary.

Evaluate these matters towards the end of your lease term

To get the most out of renting office space, we’ve put together a few helpful tips:

1. Start evaluating on time

Start evaluating your space needs at least two years before the end of your lease term. This gives you enough time to explore options, such as moving or renegotiating your current lease terms.

2. Review your space requirements

Due to hybrid working, many organizations need less office space. This makes the end of a lease term a good time to discuss whether a smaller, more flexible property would better suit your needs.

3. Negotiate improvements

Considering staying? Then discuss improvements with your landlord. Think about making the property more sustainable, adjustments to accommodate hybrid working, or improvements to the indoor climate and facilities. These adjustments should be incorporated into the new lease agreement. Because when renting office space, it’s likely that your lease agreement is based on the standard model created by the Raad voor Onroerende Zaken (ROZ). This model is often referred to as the “standard” and offers a lot of clarity, but it’s important to understand that it’s mostly drafted in favor of the landlord. Therefore, it’s crucial to critically assess your specific situation and discuss potential adjustments with your landlord. We previously wrote a blog that goes deeper into the pitfalls of the ROZ model.

4. Check the rent price

Ensure that your rent is in line with market value. Due to recent changes in demand for office space, there may be opportunities to negotiate better terms. This is especially true if you’ve been renting for a long time and market rents have decreased.

Returning square meters

An important advantage of a new lease term is that it offers an opportunity to reassess the rented space. Many companies choose to give back square meters and opt for more efficient layouts, partly due to the flexibility hybrid working provides.

Current Developments in the Office Space Rental Market

The office space rental market has changed significantly in recent years. Here are some key trends that may influence your decisions:

1. The Impact of Hybrid Working

Hybrid working – where employees work partly from home and partly in the office – is a lasting phenomenon in the Netherlands. This has led to a reassessment of the required office space. The demand for large, traditional office buildings is decreasing, while the demand for smaller, flexible, and high-quality office spaces is increasing. This is especially needed by medium-sized and small businesses.

2. Sustainability and Accessibility

There is a growing demand for office buildings that are easily accessible and meet high sustainability standards. Locations with strong sustainability features and good public transport connections are particularly popular. This aligns with the broader focus on responsible business practices.

3. Changing Demand for Office Space

The demand for office space in the five largest cities in the Netherlands is expected to decrease by approximately 8.7% by 2030, mainly due to hybrid working. This emphasizes the importance for tenants to evaluate their future space needs in advance and consider flexible solutions.

In conclusion

At the end of your lease term, the office rental market offers plenty of opportunities. Landlords often have an interest in keeping you as a tenant, which means there’s room for negotiation.

Final tip: The landlord won’t alert you to the opportunities outlined above. So, mark two years before the end date of your lease term in your calendar and revisit this blog then.

Want to learn more about our process? Read more about our approach here.

Parella Group

[email protected]

+31 (0) 20 670 80 90

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