Though there are high vacancy rates in most major cities, there are sectors of every market that are very tight. If a client requires something very particular, we need to allow plenty of time and be prepared to be very flexible in how the deal is put together. In some cases, clients have to be prepared to take on the risk of subleasing their own space or extend the current location to wait for a tenant to vacate that perfect location. A good property consultant will know what is becoming available and when – well before it hits the market.
Firms are not in business to shrink. Most tenants expect their business to grow over the next five to seven years (equating to the approximate length of your lease). It is important to sufficiently forecast how a clients’ business is likely to change over the full duration of lease or fit-out. Flexible lease terms and a realistic space budget will give clients the latitude to expand.
No two office buildings are the same. It is not possible to know how a particular option will accommodate a business until a “test–fit” is conducted. If one premise can accommodate more staff than another in an equivalent amount of space, then the total rental cost is lowered. We do not know how the options compare until we get a professional space planning perspective for both premises. At the minimum try our Space Needs Calculator.
Tenants often invest a considerable amount of time and effort going through the process of selecting a suitable accommodation option. Once the decision is made, it is imperative to “lock it away” quickly. Landlords often continue to seek tenants for the space until a lease is signed and a guarantee secured.
Restoration means returning the premises to its original condition. This can take considerable time and is often or overlooked by tenants. Missing this deadline could cost a premium post-expiration rent while contractors complete your restoration obligations.
Cloud computing and other workplace trends are revolutionizing the way people work and the space required to set up an office. We recommend beginning to tour premises once our clients have assessed their space requirements with the assistance of a consulting architect or designer. Having the right fit ensures clients that they are looking for the right amount of space. Try our Space Needs Calculator.
A single point of contact will ensure the right message gets out to the market and save time for all involved. Input from Finance, HR and IT departments, plus the advice of lawyers, architects and project managers are required. We advise our clients to appoint someone in their organization to take control of this process. Ideally, this individual is not only well organized and a good communicator but has authority to sign off on major project stages.
Too often, business accommodation decisions are made based on bottom line costs. Occupancy costs are typically a distant number two to the costs associated with attracting and retaining good staff as property costs are. If a firm lost 10% of its staff in a move, how much would it cost the business to rehire and train? Does the property pro- le and improvements send the right message to clients?
It is imperative that companies understand their company’s real estate needs, not just today but for the next few years. No doubt, managers expect their businesses to evolve over this period. We ensure that our clients’ long term real estate needs are considered at the same time as their immediate needs.
By failing to plan well in advance, you can find yourself in a poor negotiating position. The shorter the lead time, the fewer the options with which to leverage negotiation. We advise clients to have three to four suitable options on their shortlist, well ahead of their lease expiration date.