Good planning will help you make a smooth business relocation
Budgeting, goal setting, business planning – all are business objectives in the fourth quarter of the year. As businesses plan for 2006, I’d like to challenge all decision makers to not only think about the big-picture changes they want to make, but to also add one more item to the list – real estate.
Whether your organization owns it or leases it, let us challenge you to make your corporate real estate a top priority next year.
There are two main reasons why real estate should be considered in strategic planning. For most organizations, real estate is one of the largest expenses, right up there with payroll. However, few organizations ever make a priority to evaluate and analyze their real estate needs. Often times they end up paying too much for their space or property.
If your lease is expiring anytime in the next two years, now is the time to start developing your corporate real estate plan. You should be planning for your long-term real estate needs. You should also be strategically aligning those needs with space availability in the marketplace. This is one of the quickest ways to control your operating expenses and increase profitability.
These days it’s a tenant’s market. With plenty of vacancy among the multi-tenant commercial buildings, there’s more competition for occupancy.
Two years ago, the vacancy rates were over 20 percent. Now vacancy is around
15 percent, and in another couple years the vacancy will be much lower. It’s a great time to take advantage of current market conditions.
As you formulate your real estate plan, take a moment to consider the
Start early. You start looking 12-to-18 months before your lease expires.
Remember that finding the right facility, negotiating the lease, getting city permits, building the space, and moving can all be very time-intensive steps in the process. Establish a single point of contact.
Relocating your office is a huge responsibility. If you don’t have the time to devote to the daily tasks associated with searching for space and organizing the move, appoint someone. This person needs to have a firm understanding of your company’s operational and business objectives. Just as importantly, they must be well organized.
Make sure you solicit input from your board of directors and/or managers as you get started. Commercial real estate decisions can affect your organization’s bottom line significantly. Your board will have a keen interest in the decisions you are making regarding your real estate, so you want to make sure their input is considered.
If you are a non-profit organization, remember that non-profits are non-traditional space users. If you are working with a tight budget or have unique operational needs, be sure to explore different property types. If you are an office user, for example, make sure you consider retail, warehouse, and office-warehouse spaces. If you are running out of options, expand your geography.
If you can work with a short-term solution, look at subleases. These can provide a short-term lease option, potentially lower rates, and flexibility.
Give yourself options. Make sure you explore multiple opportunities to lease or purchase until you are 100 percent satisfied. Not only will other properties provide leverage in your negotiations, they’ll give you a backup if “Plan A” falls through.
Many times the help of a commercial real estate broker, real estate attorney, architect and general contactor can save you time and money in the long run.
Unless you can predict the future, ask for options in the lease. That way you won’t end up having to relocate when you grow.
Consider a long-term lease. The longer the lease term you can commit to, the better terms you can get. A long-term lease makes it easier for the landlord to keep your rate competitive and still build out your space, pay commissions, etc. Remember there are many ways to add flexibility to your lease. The lease term is just one of them.
'The attention to detail and professionalism that Troy and his staff brings to our contract drafting process is unmatched. It’s a rare occurrence to find a law firm that cares as much about your legal protection as you do. But, Doucet Co. LPA is that law firm."
Mr. Doucet and his staff handled two foreclosures and a related matter for me. I found everyone in his office to be professional, effective and responsive. Everything he handled for me got me the results I expected. I highly recommend Doucet Co., LPA.
As an attorney and former client of Doucet Co., LPA, I was very impressed with the representation of Troy Doucet and his firm. I would recommend him to all who face difficulty in saving their home or getting cooperation with their mortgage companies.
If you need legal assistance regarding foreclosure, I urge you to consider putting your complete trust in Doucet Gerling. They will employ their vast knowledge and expertise on your behalf and work to attain a great outcome for your individual needs and situation.
"Troy Doucet is one of the most gifted attorneys that we have ever had the pleasure of dealing with. He treated us with kindness and generosity. We were most impressed with his integrity and high sense of duty to us. If you are looking for an attorney to get the job done we highly recommend Troy Doucet. Our family can never thank him enough for getting our foreclosure problem solved."
My company has worked with multiple law firms in the past, but none have come close to matching the quality we are seeing from Doucet & Associates. If you want an attorney who has a deep understanding of both the legal system AND business, hire them – you won’t be disappointed.
"Mr. Doucet worked wonders in my case. He stood up for me when I felt overwhelmed and helpless and kept my credit rating and future intact. Thanks you so much for helping me and my family."
"My family and I would like to send a thank you with sincere gratitude for all the time, hard work, and long hours set a side daily to represent and speak on our behalf during a very challenging time in our life. Our success is a reflect of your commitment. Thank you Troy Doucet & law firm."