Small lease decisions. Big financial impact.

Kiwis are known for our DIY spirit, it’s part of who we are. And while that hands on approach is perfect for building a deck or tackling a weekend project, it’s a risky mindset when it comes to commercial leasing.

Here’s the hard truth: too many leasing decisions are made in haste, treated as admin tasks or delegated to someone with minimal experience and a gut feel. But commercial leasing isn’t just about securing a space and signing off on rent. It involves a complex web of choices, each one with the potential to shape your financial performance and business trajectory.

At first glance, a lease might look like a good deal. But fast-forward a year or two and the hidden costs emerge: too much space, inflexible terms, missed incentives, fit-out blowouts and rising ongoing expenses. What once seemed like a simple decision can become a long-term drag on your business.

The issue? Most organisations don’t realise what they’ve left on the table, until it’s too late.

We call this the multiplier effect, when ill-informed choices in the right areas combine to deliver major financial risk. In leasing, that effect can be the difference between a liability and a competitive edge.

At TwentyTwo, we’re about smart, strategic decisions, the kind grounded in deep market insight and practical experience, designed to deliver compounding impact across cost, risk and long-term flexibility

Hidden costs of DIY leasing

You wouldn’t let your accountant make tax decisions based on gut.

You wouldn’t let your lawyer guess the legal risk.

So why let your next biggest cost, property, be driven by instinct, shortcuts and someone’s “deal experience”?

Here’s what we see again and again:

  • Space that far exceeds actual needs (and budget).
  • Landlord incentives left unclaimed.
  • Fit-outs that weren’t scoped or priced properly.
  • Lease terms that trap you when your business evolves.
  • Exit obligations that hit you when it’s time to move.
  • Timeframes where no one is clear on what’s happening.

This isn’t admin. This is strategy.

Small decisions, big payoff, or big cost

Leases aren’t won in the rent negotiations. They’re won in the details, the clauses most people skim over or ignore. Each one is a lever. Pull them the right way and you unlock value. Miss them and they can become costly missed opportunities.

The idea is simple, well-informed, expert-led decisions across a range of lease elements compound to deliver serious long-term gain, or avoid serious long-term pain.

This isn’t theory. It’s reality. We’ve saved clients plenty of money over the lease term through changes that look minor ,until you run the numbers:

Want better lease outcomes? Get strategic

Don’t obsess over rent per square metre if you haven’t considered the rest. Focus here:

  • Area. Too much space? That’s money down the drain.
  • Lease term. The longer the lock-in, the bigger the risk.
  • Fit-out. You pay more when you don’t know what to ask for.
  • Landlord incentives. Most people forget to ask what’s market.
  • Exit obligations. If you don’t understand them, prepare for pain.
  • Landlord works. Promised vs delivered can be worlds apart.
  • Programme. Can everything be delivered on time? What are the penalties?

Every one of these is a make-or-break moment in your lease.

If you’re making a lease decision this year, or have one coming up, ask yourself, are you making this decision with complete clarity and expert advice? Or are you crossing your fingers and hoping for the best?

Hope is not a strategy. Especially when your money is at stake.

Seven-step one-pager. How to pull the right levers and unlock serious lease savings.

Author

Chris Ware

Principal
Practice Lead: Advisory22

Motivator, mentor and forward-thinker. With over 17 years of property experience in both landlord and…
Date
23 June 2025

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