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Market Info |
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Most tenants would prefer to remain in their current space, if feasible, rather than incurring the cost and disruption of moving. Given adequate lead time, CFG may be able to achieve this goal. Tenants should recognize that a lease renegotiation or renewal represents an opportunity. In this era of increasingly rapid innovation and corporate re-engineering, it is probable that a company's strategic plan has changed since the original lease was executed. A renegotiation or renewal offers the occasion to modify lease terms and conditions that more accurately reflect the changes within the tenant's organization. Many real estate brokers attempt to discourage tenants from renewing their leases since landlords often do not pay commissions for such transactions. Therefore, the broker's financial incentive is to urge relocation, a direction that may not be beneficial to the tenant. This is a clear conflict of interest, which is counter to our philosophy. We will not allow our objectivity to be compromised. We present the tenant to the landlord as a free agent, who will consider remaining in the property as one of many viable options. We insist upon fair compensation for our services, whether our clients renew or relocate. Thus, we align our own interests with our clients.
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Each employee can (and will) tell you that the right location is within walking distance of their home. However, the criterion for an acceptable location is one which enhances employee retention, employee recruitment and/or customer accessibility. Commuting distance is not as important a factor as commuting times, traffic congestion and parking availability. Before beginning a site search, Corporate Facilities Group does a demographic analysis. This analysis illustrates the impact of alternative locations on employees. It provides management with a tool for establishing approximate geographic boundaries of the site search.
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much will it cost? |
Quoted rents are a poor indicator of occupancy costs. Quoted prices for each property will differ depending on expenses included in the quote. Variables would include:
Plus, each property will have different usable square footage, varying floor sizes and configurations, and building efficiencies. In most cases, these are not readily apparent. In evaluating the economics of a deal, all these factors and more must be quantified in order to accurately compare building occupancy costs. We reduce the variables to enable an "apples to apples" property comparison.
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terms be negotiated? |
A tenant’s negotiating leverage is maximized when there is potential for change (lease renewal, renegotiation, relocation or taking additional space). The velocity of business changes facing the today's corporation mean that strategic plans may shift every 9 - 18 months, sometimes radically. Real estate requires a longer commitment. The conflict between short range operational horizon and long term occupancy commitments can result in costly mistakes. Corporate Facilities Group understands this dilemma and will take pre-emptive steps to prevent the unpleasant surprises that might otherwise occur in the midst of your lease term. We seek to ensure that the lease document is flexible enough to accommodate inevitable changes in strategic plans.
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long will it take? |
Longer than you think. Although the length of time will vary somewhat with the size and complexity of the requirement, a minimum of six to ten months should be allowed from the time you start looking until the date you move into the new space. The most time consuming aspects of the process are the negotiation of lease terms and the construction of tenant improvements. The more people and/or firms involved in the process (management team, corporate approvers, asset manager, attorneys, vendors, contractors, sub-contractors, etc.), the longer the time-line. Typical time frames might be:
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