As an office lease approaches its expiration date, tenants face a crucial decision: to either continue their tenancy or seek new premises. Staying means remaining in the current office, where you can renegotiate the lease terms and consider office refurbishments. Going involves relocating to a new property and customising it to meet your specific needs with a full design and Build project.
Contents:
1. What is a Lease Break?
2. The changing office landscape in 2025
3. Evaluating the decision to move or stay
4. Planning for the future
5. Maximising the benefits
6. Lease Break Case studies
7. DENTON, embracing innovative office design trends
What is a lease break?
A lease break is a contractual clause that allows tenants to terminate their lease agreement before its expiry date. In the current context, lease breaks have gained newfound importance due to the shifting needs of businesses. They offer companies the flexibility to respond to changing circumstances like needing less office space without being locked into long-term commitments – all while minimising the financial strain.
However, it’s important to note that breaking a lease can have its own financial implications, including penalties and costs. The decision to break a lease should be carefully considered, taking into account both the immediate and long-term consequences, as well as what your company and employees stand to gain.
The Changing Office Landscape in 2025
As we move through 2025, the shift towards hybrid work models continues to influence office leasing decisions. Companies are increasingly reevaluating their office needs – some opting to reduce space, while others are reimagining how their current offices can support both remote and in-office teams. This change has made lease breaks more valuable, offering businesses the flexibility to adapt without being locked into long-term commitments.
In response, many businesses are opting for office fit-outs that accommodate flexible workstyles, such as collaborative spaces, quiet zones, and tech-enabled meeting areas. These designs support the ongoing trend of hybrid work while enhancing employee productivity and well-being. As businesses navigate the evolving office landscape, lease breaks provide an opportunity to make informed decisions – whether it’s staying and upgrading existing space or relocating to a more suitable, agile environment for the future.
Evaluating the Decision to Move or Stay
When considering whether to move or stay in your current office space, it’s essential to assess the viability of your current location. Consider the advantages and disadvantages of renewing or renegotiating the lease, as well as exploring other office space options in the market.
Renewing or renegotiating the lease can be a good choice if your current office space still meets your needs and you can secure favourable terms. However, it may not be the best option if you require a more significant change to your workspace. An office refurbishment offers cost savings, maintains brand familiarity, and provides a chance to re-evaluate and optimise your workspace. This ultimately enhances workplace efficiency, in contrast to the cost and disruption of relocating.
However, exploring other office space options can open up new possibilities. Consider whether a different location or layout could better serve your business goals. Weigh the cost, convenience, and benefits of a new space against your existing one. Relocating your office offers the advantages of tailoring your space to current needs, refreshing your brand, choosing the right location for cost savings and staff acquisition. Relocation provides opportunities for positive changes and long-term growth.
Before beginning your new fit-out, you should know what you want. Ask yourself the following questions:
- Why do you need a new office?
- What kind of fit-out do you want?
- Where will your new office be?
The answers to these questions will help determine your budget, the length of time it takes to complete the fit-out, and provide guidance for functional and aesthetic choices. Our office space fit out calculator helps you determine the right amount of space you will need for your future office design.
Planning for the future
While your workplace needs to reflect the current climate of your business, it should also be able to adapt to future changes. Along with the ‘big picture’ questions above, write down the answers to these ‘future direction’ business plans:
- How is your business / industry going to change and grow over the next few years?
- Can your current space accommodate company expansion?
- How will technology trends impact the size and shape of your office?
- Is your space flexible enough to adapt to rapid change?
If your existing facilities are outdated and unsuitable, then you should start looking for a new space to house your office. On the other hand, if you have the space but are looking to upgrade your workplace environment to improve company image and enhance productivity, a refurbishment might be the answer.
One solution to optimising office spaces in the post-COVID world is an office fit out. Office fit outs involve redesigning and remodelling your workspace to align with the needs of a hybrid workforce. These projects focus on creating safe, collaborative, and employee-friendly environments, essential elements in today’s work landscape. Whether you are relocating and need a full design and build project or staying and deciding to refurbish your current space, you will require some type of office fit out to support the modern way of working.
Before beginning your office fit out, there are many things that need to be considered:
- What are the pain points my employees currently face?
- What type of space do we need?
- How many employees are in the office at one time?
- Are we going to expand in the near future?
- The type of staff we are trying to attract? Should we try to attract Generation-Z and Millennials?
- What are my businesses unique requirements? Extra security? Extra-tech? A smart office?
Office fit-outs can include flexible workstations, enhanced technology infrastructure, and ergonomic furniture. Such changes can boost productivity and employee well-being, ultimately leading to a happier and more engaged workforce.
Maximising the Benefits
To make the most of an office fit-out project, consider incorporating technology and flexible furniture into your office design to create an agile workspace. Technology, such as video conferencing and smart office systems, can enhance communication and collaboration in a hybrid work environment. Flexible furniture and layouts can adapt to changing needs and promote employee comfort and autonomy.
Remember that the advantages of a well-planned office fit-out extend far beyond the immediate impact. Investing in your office space can lead to various long-term benefits;
- Improved productivity
- Improved employee satisfaction
- Improved talent retention
- Improved talent attraction
