Tips you need to know when your lease is about to expire

I read Bagus' article for Britcham about the office market in Indonesia, the affect of global crisis, and what he sees as the trends for companies in their decisions regarding their office lease. It's an enlightening read, and a great tips for companies when their lease is close to expiry date.

• You should give enough time to decide whether you want to stay or move.
  
• Office market is over supplied; new office building are giving attractive rental packages
• Many companies deciding to stay are negotiating their base rent and service charge, since that's the major component of occupancy cost
• Financially, you should try to sign up for a long lease; 5 to 10 years. Because the fit-out cost is not cheap and you can amortize that over the lease period to make the total relocation cost more manageable
• Now is a great timing to achieve attractive rental package; either you decided to stay or move
  

The article was concluded with developer perspective to Indonesia economy; many of them are confident to bank lending rate and continue the development. Also how investors are now considering Indonesia to have a great real estate investment opportunity.

Jakarta Office Rental Trends 2009

Did you know..

• The level of demand for office space in Jakarta remained low (at 8.1%) as of August 2009
• With the new office building developments completed in the next two years, the average occupancy rate is predicted to decline
• The major market activity will be corporate relocations
• If you're currently looking for office space, that means more choices for you.
• That also means you can try to negotiate your rent when you renew your current lease

Want to run a comparison study of several office buildings? Or negotiating your rent with the developer/landlord? We can help :)