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Negotiating leases

Once you have Government Property Group (GPG) approval, define any lease requirements before beginning negotiations. Use your property plan to assist with this, if you have one.

Complete the approval process

Mandated agencies need approval from GPG before acquiring, renewing or ending a lease.

Lease approval process

Define your lease requirements

Refer to your property plan, and ensure that the intended outcomes of the lease negotiations fit with your broader property strategy.

Property planning

To make sure you get the best value and outcomes:

  • get all relevant information about:
    • the building (including the NABERSNZ rating and seismic resilience)
    • the market
    • outcomes of recent lease negotiations
  • involve experienced professional negotiators, especially if this is your first lease negotiation
  • talk to us; we can offer advice and engage with other agencies operating in the same market to ensure consistency
  • engage specialists if the deal is large or complex.

Energy efficiency standards

Seismic guidance for government office accommodation

For large or complex leases, we recommend using the Government Standard Lease Agreement. If you need to engage consultants, use the Common Capability contract.

Lease templates for mandated agencies

Property consultancy services contract – New Zealand Government Procurement

Begin negotiations

Lease negotiations allow all parties to achieve the best possible outcome. During this process, make sure you:

  • allow an appropriate amount of time for the negotiations (this can vary depending on the size and complexity of the proposal, and whether the parties are familiar with the process)
  • follow a rigorous process and keep a record of all communications relating to the negotiations (for example, all meetings and telephone conversations are recorded in writing)
  • get legal advice throughout the planning, negotiation and documentation process
  • ensure you have a viable alternative to support any 'walk away' position
  • factor in the agency’s strategic objectives, budget, and timetables for procurement
  • have a NABERSNZ rating, have the landlord's rating, or have the landlord's agreement to obtain one, if this is a new lease of 2,000m2 or greater
  • consider any agency directive to make a trade-off with performance risk factors (like the building’s seismic resilience and parameters, building code issues or the building’s services).

Seismic guidance for government office accommodation

Complete any documentation

Leases set out the 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.

Make sure that:

  • you use the relevant lease agreement template
  • you get a solicitor’s certificate certifying all is in order for execution
  • the lease is executed by someone who has delegated authority
  • accounting practices in accordance with the NZ PBE IPSAS 13 are adhered to
  • all correspondence and documentation relating to lease negotiations are stored in the Government Property Portal (GPP).