2025 trends emphasize the importance of starting the space evaluation process much earlier than in the past, writes Colliers SVP Emily Hoffman.
Every year, many businesses face the critical decision of whether to renew their office lease or relocate. In many cases, companies that delay planning can incur up to 30 percent higher costs due to last-minute decisions.
Rushed evaluations often lead to unforeseen expenses, fewer options, and operations disruptions. Starting the process early not only reduces stress but also provides opportunities for better negotiations, a wider range of choices and more effective strategic planning.
The current economic environment has prompted many office tenants to delay decisions about their space needs, even as lease expirations approach. However, companies can’t afford to put these decisions off. Whether renewing a lease, relocating, or still undecided, adopting a proactive approach is essential. Ample time is needed to secure the most favorable lease terms because many clients today are already planning for lease expirations as far out as 2027.
As we move more into 2025, there are several factors to keep in mind:
A Growing Market and Pendulum Swing
Dallas-Fort Worth is experiencing remarkable population growth, continuing its status as one of the fastest-growing metropolitan areas in the United States. This influx of new residents has attracted diverse industries, leading to more companies relocating or expanding their operations in the area. In 2025, the DFW office market is poised for even more growth, driven by a strong economy and rising demand for high-quality office spaces.
As companies continue tightening remote-work policies and requiring a return to the workplace, the demand for office space increases further. CEOs are confident that in-person work boosts productivity and facilitates mentorship for younger and new employees. Companies such as JPMorgan Chase, Amazon, UPS, Goldman Sachs, and Tesla are mandating a return to the office five days a week. Additionally, firms that signed long-term leases before the pandemic are eager to fully utilize their office spaces again.
The growing population and the return-to-office trend have strengthened landlords’ confidence in the office market, driving rental rates higher. Many tenants are entering the market early to lock in rates before they climb further.
Starting the lease process late can also severely limit options, forcing companies to settle for spaces that may not fully meet their needs and causing an unintentional loss of leverage. Rushed decisions under tight deadlines can result in unfavorable financial terms or poorly suited locations. In contrast, starting early allows tenants to evaluate options carefully and negotiate effectively.
The Complexities of Relocation
For businesses considering relocation, the process is often complex and time consuming. Starting early ensures there is enough time to visit potential sites, evaluate options, negotiate optimal lease terms, and develop a detailed transition plan to minimize operational disruptions.
Even tenants that intend to renew their leases should begin discussions with their landlord well in advance. Creating leverage by presenting a credible possibility of relocation requires adequate time to explore alternatives and enough time to adequately build out an office space. Landlords understand that moving requires significant lead time, and that without it, tenants lose negotiating power.
Another factor: Designing and building out a new office space involves several steps, including working with architects, sourcing materials, and navigating potential delays due to supply chain disruptions, labor shortages, and approval processes. Without sufficient time for these tasks, tenants risk losing leverage in negotiations because landlords know a relocation isn’t feasible within the given timeframe.
Recommended Timeframes for Lease Planning
To maximize leverage and create competition among landlords, companies should begin strategizing with an office tenant representative advisor according to the following timelines:
• Offices over 20,000 square feet: 18–24 months before lease expiration
• Offices 10,000–20,000 square feet: 12–18 months before lease expiration
• Offices under 10,000 square feet: 12 months before lease expiration
Early preparation allows for thorough business needs assessments, comprehensive market research, and the creation of contingency plans.
Ultimately, an office lease is not just a legal document—it is vital to a business’s success. Lease provisions can significantly impact operations, finances, and future growth. Initiating the evaluation process well in advance improves negotiation leverage, helps secure favorable terms, and ensures a smooth transition—whether renewing or relocating. It is important to enter lease negotiations with a clear strategy, equipped with knowledge and expert guidance to make an informed decision.
This CRE opinion piece was written by Emily Hoffman, a senior vice president at Colliers Dallas-Fort Worth.