My Lease is Expiring, What Should I Do-5 Questions to Ask Yourself?

If your lease is coming up for renewal, there are 5 questions you should ask yourself before you decide whether you should renew your current lease, or look at moving.

1.  How is my current business situation?

After the past couple of years, this question can have a multitude of answers. You not only need to address the current situation, but make your best educated guess on where your market and industry will be over the term of your new lease.

2.  Is my current lease rate competitive with the local market?

There are deals out there.  Your current lessor may be willing to offer a more competitive rate. We have recently seen some landlords that want to deal and some that do not.

3.  Can I change my current storage configuration and increase SKU capacity and accommodate growth?

There are many types of storage equipment available, and you need to make sure you are utilizing the most efficient for your type of operation.

4.  Can I change my mobile equipment to increase SKU capacity and accommodate growth?

Changing from traditional forklifts to narrow aisle equipment or very narrow aisle equipment can dramatically increase your cube utilization. Storing more products in the same amount of space will increase your operating margins.

5.  Can I change my processes/operations and increase my efficiencies and throughput?

Moving to a larger facility and utilizing the same inefficient operating methods will only increase your costs. You will not be improving your business, only operating your business on a large scale.

Hopefully answering these five questions will help you make the right decision. Too often, we see clients move into a larger, unnecessary facility because they assume their current facility has reached capacity and they want to grow their business. Maximize the operating efficiencies of your current facility before you incur any unneeded, additional overhead.