Buying
You’re outgrowing your space
Growing is a good problem to have, but the lease doesn’t grow with you. There are usually more ways out than tenants think, and the best one depends on your lease and your landlord. Start by reading the expansion clauses.
The problem
Growing is good news until the lease gets in the way. Walking away early can mean paying rent on two spaces or facing a claim for the rest of the term. And if you sign the bigger space too early, you pay for room you don’t use yet.
What I do about it
I start with your lease: any expansion rights, first refusal on neighbouring space, sublease and assignment clauses. Then I price the options side by side: expand in place, take extra space nearby, or move and hand off the old lease. You see the real cost of each before you commit.
What your landlord wants
Your landlord would much rather grow with you than lose you. Expanding in the same building saves them a vacancy and a leasing fee. If you have to move, they want the old space re-leased quickly and their income protected.
Where everybody wins
Often the best answer is an expansion or a move within the same landlord’s portfolio, with your old lease folded into the new one. You get room to grow without paying twice, and the landlord keeps a growing tenant.
Your options, roughly in order of ease
- Take more space in the same building. Your landlord may have a neighbouring unit or another floor. They keep a good tenant and you avoid a move. Check your lease for a right of first refusal or expansion right.
- Blend and extend. Some landlords will relocate you within their portfolio, or “blend” your current rent with the new space’s rent in exchange for a longer term.
- Move early and deal with the old lease. You can try to negotiate an early termination, assign the lease or sublet the old space, or have the new landlord help cover the overlap.
- Satellite space. Sometimes a small second space (storage, a second shop, a few desks nearby) buys you two years without a full move.
What to check before you call your landlord
- Does your lease allow assignment or subletting, and what does landlord consent require?
- Is there an expansion right, a right of first refusal, or an early termination clause?
- Note when your lease ends and how much rent is left on it. That total is your exposure.
- Is there a personal guarantee? It may follow you if you sublet instead of getting released.
Look around before you ask your landlord
Your current landlord will give you a better expansion deal if they know you have a real alternative. I can quietly line up a couple of options elsewhere, so the conversation with your landlord starts from facts.
Questions people ask
Can I break my commercial lease if my business outgrows the space?
Usually not without your landlord’s agreement, unless your lease has an early termination right. The common routes are negotiating a surrender, assigning the lease, or subletting, each with different risks. A lawyer should review the lease before you commit.
What should I gather, ask and watch for?
Documents to gather
- Your lease: term left, expansion, first refusal, sublease and assignment clauses
- Headcount now and planned for three to five years
- Current floor plan and what doesn’t work
- Budget for rent, build-out and moving
Questions to ask
- Is there space next door or in the building I could take?
- Would the landlord end my lease early if I lease bigger space from them?
- Who pays to restore my current space when I leave?
- How long will permits and the build-out take?
Common mistakes
- Signing a new lease before you know how to exit the old one
- Leasing for today’s headcount, not the next few years
- Underestimating build-out time
- Forgetting restoration costs on the old space
Typical timeline
- Month 1Read the lease, set needs
- Months 2 to 4Tour and compare options, including staying
- Months 4 to 6Negotiate and sign
- Months 6 to 12Build out and move; these steps often take longer than expected
Typical ranges. Your lease, lender and the City set the real dates.
Go deeper
If you’re looking for more details
Signs you’re really out of room
- People working in meeting rooms or the kitchen
- Turning down work because there’s nowhere to put it
- Inventory stored off-site or in a second unit
- Hiring plans that don’t fit the floor plan
Your options, side by side
| Option | Good when | Watch for |
|---|---|---|
| Expand in your building | The landlord has space next to you | Timing, and whether your lease term lines up |
| Add a second space | You need room fast, short term | Two sets of costs and a team split up |
| Move | You need much more space or a different kind | Restoration costs and overlap rent |
| Sublease part of a bigger space | You’re growing into it | Your landlord’s consent, and the sublease terms |
How to plan for growth without overpaying
Lease for where you’ll be in two or three years. Ask for a right of first refusal or first offer on space next door, an expansion option, or a shorter term with a renewal option. That keeps you from paying for empty desks today.
Run the numbers
- Space size estimatorA rough answer: most offices need 150 to 250 usable square feet per person, restaurants 30 to 40 per seat including the kitchen, and warehouses 25 to 35 per floor pallet position.
- Total occupancy costThe advertised rent is only part of what a commercial space costs.
- Office and store moving checklistA typical commercial move takes 6 to 12 months from first search to moving day, longer with a build-out or permits.
Search
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Next step
Grow without a messy lease exit.
Send me your lease end date and how much more space you need. We’ll look at the cheapest way to get it.