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.
Involving C-Level and V-Level personnel during the site selection process is the best way to avoid the most common mistake companies make during the commercial real estate relocation process: trying to avoid disruption to business by not involving enough department heads. After making this mistake, companies typically have to scramble to build internal consensus before their lease ends. This causes the company to rush while forming their commercial real estate requirements which can lead to disruption and unmet expectations as often their new space will be suboptimal. To avoid this result, here is an ordered process to follow that has worked for most companies facing a company relocation or lease extension.
1. Make sure to take into account all aspects of your operation when considering a commercial real estate relocation. This means ensuring that all aspects of your business plan are supported by your new space. Considering that most commercial real estate leases are long in duration you need to take into account the future needs of your business. A common mistake business owners make is leasing space that is so small that the business has little room to grow. The opposite is also true; don’t lease too much commercial real estate based on unrealistic growth expectations. Another important aspect of a company relocation to consider is using it as an opportunity to improve your company’s image and to improve employee moral. Owners of start-ups often have the most difficult task as anticipating the business needs can be quite tough. However, taking the time to thoroughly think about your commercial real estate space requirement is key to finding the right space.
2. Early planning is the best way to start the commercial real estate relocation process. Most vendors that service the industry will spec out sample spaces for your free of charge in hopes of earning your business, so make sure to take advantage of such services. Sample seating plans will help you figure out how much space you need and help you anticipate future needs like how much space you need to grow comfortably.
3. A competent commercial real estate broker should be part of your relocation plan. While there are many honest owners in the business, some aren’t and should be avoided; a solid broker rep can help you avoid those owners with a suspect reputation or building. Furthermore, landlords have far more experience with the process than you do, so it is best to have somebody with extensive knowledge representing you. The best part is you won’t have to pay you broker’s fees as landlords are happy to pay a fee to any broker that helps fill a vacancy. Brokers track all of the available commercial real estate in a market and will show you buildings that you didn’t know would work for you. They will help you save time, money and keep you on track. There are many reasons to use a broker and no reason to avoid using one.
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.
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