A company’s operations are always affected by a relocation, but many companies do not employ personnel with commercial real estate relocation experience. Nonetheless, companies will go through the commercial real estate relocation process about every 3-5 years. They will be facing landlords that are far more versed in the commercial real estate process than they are. Use our helpful guide for selecting and leasing commercial real estate to navigate the process and to save valuable time and money.
Avoiding the most common mistakes is critical to finding the right commercial real estate location for your company. One of the biggest mistakes you can make is to not involve enough of the company’s decision makers in the process. These decision makers are critical for helping you define your company’s ideal commercial real estate space; do not view their involvement as a distraction from their daily tasks. Not involving these individuals will cause you to rush through the process which will lead to disruption of daily business operations and practically guarantees that you won’t find the space. Follow the sequential process below for other tips on how to find the most ideal commercial real estate location for your company.
1. Many companies make the mistake of only taking into account certain aspects of their operation when planning a commercial real estate relocation. It is best to carefully review your business plan and to make sure that your relocation plan is congruent with all aspects of your plan including future goals as commercial rental agreements often last at least 5 years. Leasing a space that is too small or too large is a common mistake business operators make, a mistake that can be quite costly. If you anticipate growth, take extra space but not so much that is strains the budget. Not taking enough space can also hurt your business as well by stifling growth, teamwork, and employee moral. You want to think about your needs carefully so that you can put your company in the best possible position to succeed. Managing a start-up can make things even more difficult, so make sure you give yourself enough time to plan accordingly.
2. Define your exact space commercial real estate requirement early. Using a few sample available properties that meet most of your operational requirements (if possible), have your furniture dealer and other equipment vendors help you layout the space to your specifications. Many vendors will provide this service for free in hopes of obtaining your business later on. This will help to flush out the size of the space required now and into the future as you plan for headcount and other potential changes.
3. Obtain solid broker representation. Commercial real estate is complicated with many moving parts. Retain yourself a good broker to work with as early on as possible to help navigate and position your requirement in the marketplace. You are not obligated to a pay a fee (the broker’s fee is paid by the landlord) and you are not going to get a better deal on your own much less find the best building to house your company. There are numerous reasons why a tenant should use a broker representative, and no reason not to. The landlord has a vested interest in obtaining the highest rental rate and best deal possible regardless if you have a broker or not, and without using a broker tenants are forced into working with the landlord or the landlord’s agent to coordinate the lease by default. These people have far more experience negotiating lease transactions than most tenants and since you are going to get brokered one way or another, you might as well have your own advocate. Plus, brokers track all of the commercial real estate spaces available in your market and can cut out a lot of unnecessary cycles for business owners and executives. They can also help you avoid unscrupulous people and buildings with known issues.
The full Commercial Real Estate Leasing Guide is available by clicking here and contains the rest of these helpful pointers. Remember to follow our guide as well and your relocation experience will be infinitely better.
Learn more about commercial real estate. Stop by Nathaniel Potter’s site where you can search commercial property listings free.
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