York Property Company
Corporate Real Estate | Tenant Representation

Lead Times For Occupancy Are Getting Longer

We are advising our clients seeking office and warehouse space to begin the search process a minimum of 9 months in advance of a target move date, and in some cases even longer out than that.

We have seen delays that are beyond the control of the tenant such as the procurement of furnishings, fixtures and equipment. Remember the images of dozens of major ships with tens of thousands of shipping containers stranded off of Long Beach CA ?

It can take several months to tour buildings, solicit proposals, negotiate terms, agree to terms, and request a lease. Once a lease has been requested, it can take another month or two (if not longer) to arrive at a mutually agreed upon document. After all that, it can take 4 to 5 months for the design, permitting, and construction of new office space. In some municipalities, government delays on permitting have caused major headaches for both landlord and tenant.

There can also be long lead times for the tenant to secure certain improvements such as racking, dock equipment, and manufacturing equipment.

While the premises may be technically ready for occupancy, the company may not be able to conduct operations.

Our advice is to plan ahead, plan ahead, plan ahead. Certainly there are examples where everything goes smoothly, and a landlord under promises and over delivers. But it is best not to paint yourself into a corner with hard dates and limited fall back positions.

Our company advises tenants in lease negotiations, nationwide. We value the opportunity to work with your company on your next facility requirement.

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