So, the time has come for you to consider either renewing your current lease or venturing into the market and looking at new space options. It can be overwhelming when looking for new space. After all, your rent is probably your second or third largest expense item. You need to make the right decision. Here are 5 things to consider when starting the process.
- Hire a qualified tenant representative. There are many brokers in the markets. Start by conducting interviews with a few. Big firms are not necessarily better. For example, at a large firm you may interview an experienced broker, but it is a junior broker that will work on your account on a daily basis. This can be a disaster if the junior broker doesn’t have experience. Boutique firms offer the benefit of getting an experienced broker on the assignment. Many times, the boutique firms offer the same financial analysis, RFP evaluation, and coordination of a good design firm. Moreover, it an be an 18 month process so you should hire a broker that you trust and with whom you will enjoy working. . Lastly, some firms will tell you they are better because they only represent tenants and don’t have conflicts. This is simply not true. Many of those firms also represent subleases, so they represent sublandlords. They also can in fact represent multiple tenants competing for the same space, thus creating a conflict. There are choices in the market, take your time.
- Consider your employees. When looking for a good space, it is important to consider factors that will affect your colleagues. For example, where do they commute from? What type of transportation do they take? What roadways do they drive? Choose a firm that can complete a survey as well as a zip code analysis showing where all the employees are coming from and what type of travel they undertake. The survey should also show what things are important to employees Remember: happy staff is a happy workplace!
- Consider Branding. Many organizations are introducing their companies branding into the workspace. This helps clients know who you are and creating the proper branding can help retain and recruit employees. Studies have shown that 55% of office workers enjoy working from home more than the office, so you want to create an inviting, creative, energetic and efficient workspace in order to have people enjoying working from home. TDKCA works with a number of branding companies that help clients through this process.
- Know Your Landlord. Landlords typically check a tenant’s financial statements to make sure they have the credit worthiness to sign a long-term lease. It is also important for a prospective tenant to research the landlord. What is their credit? What else do they own? How long ago did they buy the property and what is their exit strategy? What planned improvements are there and how will this affect their operating statements? Knowing your landlord and feeling comfortable with them will help you make an informed decision.
- Do some homework before you venture into the market. One of the most important things we do at TDKCA, with clients, is challenge them to not only think about their current needs, but also the next 5 or 10 years. Where is your business now? What are your employee counts? How will you grow in the next 5 or 10 years? What is your industry average ratios (office to support staff etc.)? We work with clients to complete detailed analysis and as well have them work with us to complete surveys helped to establish their needs, as well as working with our design firm to establish a space layout and needs analysis. This is critical information when beginning a search. It ultimately saves time and money.
TDKCA can help you through all of the points above, to reach an informed, well thought out decision. To learn more, feel free to contact us.