It is a rare exception for any business to be able to accurately forecast space requirements more than three years out.  So why are there so many ten year leases?  Well, the first reason is that landlords like them.  What would the tenant really like?

The best lease for any tenant would be a one year lease with twenty options to renew.  And to improve upon that, the tenant could be able to renew for all or any portion of the space, and have the option to take any additional space at the same rate.  Ridiculous?  Not really, although variations of these terms can be negotiated into any lease.

Several years ago, a client of mine called to inform me that he was leaving his present firm to head the new East Coast operations of a Nevada technology firm.  We knew that they would ramp up quickly as they acquired clients, although as with any entry into a new market, timing was difficult to forecast.  My client said, "There will only be about a dozen people when we open the doors, although I expect to grow to 80-100 people over the first 2 years".  This growth would require about 20,000 SQFT of space, and they were prepared to lease the space immediately.  My firm identified a building that had just lost an 80,000 SQFT tenant and had four floors available.  In preparation for a tenant, the space was demolished to a vanilla shell.

We approached the landlord and offered that we would lease enough space for the twelve starting staff, about 2,500 SQFT.  Further, my client would pay to cover the entire floor with above standard carpeting, and their space would be demised by placing tape on the floor to mark the area.  In exchange for the carpeting, they received an option to expand at the same rate, and a first right of refusal should the landlord have a tenant for the balance of the space.  Certainly, the tenant was at risk that the landlord would show up with a user, and they would be forced to take the entire floor (which they were already prepared to do anyway).  However, once the landlord knew that my client had a high probability of expanding, they were motivated to lease the remaining three vacant floors first, which they did.  

Over two years, my client moved that tape four times to accommodate increasing rows of cubicles.  Each time, they only paid rent on the portion of space that they were using.  Ultimately, we negotiated with the landlord to tear up the entire lease and lease two and then two and a half floors in another of that landlord's buildings.  This strategy saved the tenant hundreds of thousands of dollars over a five year period.  

Stay limber.  Take only what you need.  Look for flexible solutions.  And remember that Less is More.