Every business has needs that need to be met to create the best economic outcome for the ownership. Irregardless of what type of business you operate you will have a need for real estate. However most business focus on their core competencies and unfortunately the real estate is usually on the lower end of the needs list until it becomes a crisis.
The panic usually comes in many different forms. It could be the unsettling realization that a lease is about to expire or that the option to renew period has just been forgotten. A more positive panic could be caused because your firm recently acquired a ned contract that will require the hiring of 20 more employees but you have nowhere to office them.
Irregardless of the situation an experienced tenant representative can meet with you and review your present situation. Based upon the results of the review specific and detailed questions that will help to formulate a comprehensive plan of attack that will give you the better outcome for your needs.
We have several tools that we use in our analysis process that have been learned after thirty years of working with office tenants to find the best solutions for their office space needs. Some of our tools are a situation analysis, opportunity analysis and financial analysis.I know these items may appear to be simple but for each phase to be performed correctly it takes years of experience to be applied at the right time to get the ideal results.
The situation analysis begins when we have our first telephone conversation. We will listen to your concerns and what you want to accomplish. Then we will formulate some preliminary solutions but will want to meet with you at your office to get a better understanding of your present operation. To see what you like and also what you don’t want to duplicate in your next location.
We will also ask detailed questions that are open ended and allow us to determine our clients unique needs. Often times a client is only focused upon immediate needs because of pressing matters and they can overlook the long term needs that if missed becomes problems in the future. To the best of our ability, we help our clients solve their short term needs and navigate them so that they have successful long term outcomes as well.
The situation analysis includes but is not limited to:
- Visit to the tenant’s present location to determine what is preferred and not acceptable with the present space.
- Planning for present office needs and future growth
- Determine the amount of flexibility the client will need in the lease terms and conditions.
- Understand specific construction requirements that are necessary for the perfect space
- Discuss technology requirements for data, communications and redundancy
- Learn the hours of operation for the tenants typical office day
Once we have a detailed understanding of you current situation, its pros and cons, and your desired office space and lease outcome we will perform a detailed Opportunity Analysis. The this is where the fun begins for most of our clients. They actually get to see the physical results of our work.
The Opportunity Analysis consists of these basic perimeters:
- Site selection of spaces that meet our clients requirements including new construction, second generation and sub-lease office space. We use or market knowledge and leverage our relationships with landlords and other brokers in the marketplace to find opportunities that are not general knowledge.
- Submitting office space that meets your budgetary requirements.
- Visit selected properties that meet the tenants requirements
- Sending specific requests for proposals to the properties that are selected after the property tour
- Analysis of office building’s systems and infrastructure
Our financial analysis standards allow our clients to make informed decisions as to how the leasing of each office will effect their bottom line. This is a powerful tool that our clients use to enable them to make the best financial decision for their business. We take each lease and compare them with a easy to read format that allows our clients to determine which options the best for their business.
Our financial analysis includes for each property:
- Cash Flow
Now that the numbers are on the table our client has the advantage to study each offer and determine if one particular space is worth the extra dollars required instead of another space. This allows the client to step back from the emotional decision of a building’ s amenities and make a solid financial decision.
Usually we will make another counter offer or two based upon the numbers we receive by selecting the top two buildings and let them reduce their rent or increase their concessions to make their option the most competitive. Once the winner is determined it is time to draft leases and present the lease to a qualified attorney for legal review.
There is another important area that we will discus in another post that pertains to construction and tenant improvement. Once the leases are signed the construction become the most important task for the tenant. A well negotiated lease will set up perimeters that protect the tenant from extraneous expenses that are not anticipated.