Negotiating leases

Mandated agencies need formal approval from GPO before starting to negotiate a new lease.

Lease approval process

The following is a general overview of what’s involved in lease negotiation. If your agency doesn’t have dedicated leasing expertise, please get in touch with our leasing team. We can support you through the negotiation process and act on your behalf if required.  

Preparing for negotiations

To make sure you get the best outcome from negotiations, you’ll need to make sure you’re well prepared with relevant information about:

• the office rental market
• outcomes of recent lease negotiations on comparable properties in the area
• the building (including the NABERSNZ rating if required and seismic resilience).

Seismic guidance for government office accommodation

We can offer advice and talk to other agencies to get comparable data to support your negotiations.

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Negotiating the lease

To help the negotiation process go smoothly, you’ll need to:

• have comparable market data to support negotiations
• allow sufficient time for the negotiations (this can vary depending on the size and complexity of the lease)
• document all relevant communications including meetings and telephone conversations in writing
• ensure all discussions remain ‘without prejudice’ and ‘subject to final approvals’
• get legal advice throughout the process
• know your fall-back position if negotiations stall
• factor in timeframes for budget and procurement approval processes.

GPO can provide advice on all aspects of leasing negotiations and act on your agency’s behalf if required.

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Completing lease documents

Leases set out the commercial terms and respective rights and obligations of the landlord and the agency throughout the tenancy. Lease documents:

• are contractually binding
• are typically non-negotiable once in place
• generally run for a long period of time.

You’ll need to:

• use an appropriate lease agreement template
• get a solicitor’s certificate certifying all is in order for execution
• ensure the lease is executed (signed) by someone with the correct delegated authority
• ensure accounting practices in accordance with the NZ PBE IPSAS 13 are adhered to.
  
  • Standard PBE IPSAS Leases — External Reporting Board

GPO can provide standard government lease agreement templates and advice on completing lease documents.

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Recording lease information

A copy of the final lease agreement must be uploaded to the Government Property Portal, along with correspondence and documentation relevant to lease negotiations. Storing lease information in the portal also means you can set reminders of key dates like renewal notice periods.

Government Property Portal

If you would like help entering this information:

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