Planning and executing a real estate transaction involve dozens of issues, but many underestimate the impact of these five factors:
1. The building’s financial stability.
Are you aware of your building’s financial condition? A sale or foreclosure brings different issues that can affect your business. Knowing the likelihood of your building changing hands is an important consideration. Having a nondisturbance clause can safeguard your organization in case of a sale.
2. Common area loss factor
The difference between rentable and usable space could mean you’re paying for areas shared by other tenants. Executives should understand which bucket the square footage figure belongs in and, if possible, verify it by using an industry-accepted measurement standard.
3. Total occupancy cost vs. rent
There’s more to a lease than cost per square foot. Understanding what’s incorporated into your rent is imperative when determining your total occupancy cost. Items such as utilities, taxes, build-out allowances, operating expenses, and common areas costs should be analyzed when comparing locations that cost the same per square foot.
4. Office of the future
Technology, mobility, and a new generation of workers have challenged traditional office design beliefs. Consider conducting a professional space plan, which can lower your real estate costs, add flexibility, and promote the four work styles: focused, collaborative, social, and learning.
5. TimePlante Moran Cresa’s motto is, “More time means more options.” To account for everyday distractions and uncontrollable lead times, we recommend looking for space two or three years in advance. It’s a myth that there is an abundance of great space available; organizations that plan ahead find the best opportunities.
For more information, visit Plante Moran Cresa.