Every office tenant reaches the same moment. The lease is coming up, the space is not perfect, someone has seen a better building, someone else thinks moving would be a disaster, and the landlord wants to talk renewal. Before long, the question lands on the table: should we stay, or should we go?
That question can create a lot of noise. Relocating sounds exciting until you start pricing furniture, cabling, tenant improvements, downtime, moving costs, employee disruption, and the joy of discovering that the conference room wall is in the wrong place. Staying sounds simple until you realize you may be overpaying, outgrowing the space, or giving up leverage you did not know you had. The answer is not obvious until you do the work.
Why I Focus on Tenant Representation
I want to say something directly here, because it matters to how I approach every lease conversation.
In commercial real estate, the landlord always has a broker. That broker’s job is to get the best terms for the landlord — the highest rent, the shortest TI package, the least flexibility. They are good at it. They do it every day.
Tenants deserve the same expertise working for them. That is why I focus on tenant representation. Not because landlord work isn’t legitimate, but because I believe tenants often walk into negotiations without understanding what they’re agreeing to, what the market actually supports, or what they could have gotten if they’d started earlier and pushed harder. My job is to change that. My CCIM designation gives me the analytical tools. Three decades in Sacramento give me the market knowledge. The combination is what puts tenants in a better position.
Start Early — or Give Away Your Leverage
The office relocation process — or renewal process — starts 12 to 18 months before lease expiration. Not six months. Not three. When time disappears, leverage disappears with it. Landlords know exactly how desperate a tenant becomes in the final 90 days. The tenant who starts early gets the deal. The tenant who waits gets the terms the landlord was already planning to offer.
The first step is always the needs assessment. How much space do you actually use? How many people are regularly in the office? What does the layout need to support? What is likely to change in the next three to five years? This analysis should happen before a single building is toured. A building tour can distort judgment — a nice lobby, a good view, or a coffee shop downstairs can make people forget the basics. Does the space actually work? Can we afford it over the full term? What is the landlord really offering?
Build Real Alternatives Before You Negotiate
Once the needs are clear, the next step is a market survey — real alternatives, not just a quick scroll through available listings. The goal is to identify genuine options: renewal, relocation, sublease, purchase. A tenant with one option has no leverage. A tenant with three real alternatives has a negotiation.
When the field is narrowed, tour carefully and take notes. After several buildings, lobbies blend into parking garages, conference rooms blend into break rooms, and someone eventually asks, “Was this the one with the weird hallway?” By then, nobody remembers. Take notes. Compare on paper, not on feeling.
Then request proposals — and make sure those proposals cover more than rental rate. Tenant improvements, operating expenses, parking, signage, renewal options, sublease rights, and termination provisions all belong in the conversation. Comparing rent without comparing total occupancy cost is how tenants get fooled into thinking they got a deal.
Get the Details in Writing Before You Sign
A vague Letter of Intent creates a messy lease negotiation. Tenant improvement scope, allowances, who controls the work, completion timelines, and cost overrun responsibility should all be clear before the lease is signed — not figured out during construction. The lease is the record. Not the tour, not the handshake, not the cheerful comment from the landlord’s broker. When the landlord sells the building, the new owner will read the lease. So should you.
Bacon Gets You In, Out, or Better Terms Where You Are.
If your lease is coming up and you’re wondering whether to stay or go, call before the clock starts making the decision for you. Call (916) 761-1202 or reach out at tom@baconcre.com.
Follow me on YouTube for video takes on Sacramento commercial real estate: @SacramentoBaconCRE