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Photo by S O C I A L . C U T on Unsplash
The previous post, The Agenda, examines the critical aspects of a space: the space itself, the site, transportation and amenities. It also helps the internal team to focus their needs for a relocation, whether it be for expansion, a decrease in space, or the move to a new space for its prestige in order to boost the company’s image.
Assemble an internal team that will work with your real estate professional who is representing your interests in relation to the other professionals involved in a lease negotiation, such as the attorney, architect, and moving company. As a suggestion, the following members would complete the Internal Team: a project manager, a personnel representative, an administrative representative, a legal representative, and a finance representative. A larger company may have a different individual for each role; an entrepreneurial situation may have an internal team of one or two. Regardless of how many people would be fulfilling all of these roles, the internal team would need to consider these five aspects of a move: the project as a whole and as it affects personnel, administration, law, and finances. Many tasks for a move can fall under the responsibility of more than one of these aspects. For example, the preparation of a construction budget is the responsibility of the real estate professional, the architect, and the general contractor. The finance representative on the internal team would communicate between those professionals and the internal team.
The internal team would focus on selecting the site, including touring different suitable space options within the market. Review the company’s history. Knowing where the company has been can greatly inform its direction. The team needs to identify the criteria for selecting a site. Consider a site in three aspects: the building, the setting, and the area. Decide if the building has adequate space for your needs, the quality of the building, and the availability of space in the area of town you desire. Determine if your needs are better met by a suburban corporate park or an urban skyscraper. Consider the site in terms of quality, expense, timing and availability.
Once the team finds a suitable site, then decisions regarding the design and construction, including material costs and floor plan design must be made. Determine if your personnel require a traditional manufactured office system of 8’ by 8’ cubicles, or around 200 square feet per person, or bench seating, which allows for around 150 square feet per person. Many options for conference rooms and informal meeting areas exist. Take this opportunity to consider decorative design elements as well. Your space can attract new talent as well as portray a clientele image.
Transportation is another part of site selection. Location matters and most companies desire proximity to major transit hubs and highway arteries. Consider also those amenities which are most important to your company, your vendors, your clients, and your employees. Examine all the various aspects of a region, including access to healthcare, housing, education, shopping, restaurants, banking, and cultural or recreational resources. All of these add to a good quality of life.
While this may seem too detailed to begin the process, proper planning will help eliminate future mistakes or misunderstandings as well as lead to a more efficient use of financial resources. We will explore the roles within the external team in the following post. These are the professionals outside of your organization who are integral to the leasing process.
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WHPounds Commercial Real Estate, LLC is a commercial real estate agency located in Southern New Jersey. Founded and owned by William H. Pounds, II, its Broker-of-Record, the company has assisted in the leasing, purchasing, or sale of over 15 million square feet in Southern New Jersey. As a boutique agency, WHPounds provides a range of services, including asset management under WHPounds CRE Management, LLC.
Disclaimer: The information herein contained is in no way meant to substitute for competent, professional real estate and legal services and/or advice for the commercial or residential real estate market in your area, which may or may not conduct commercial or residential real estate transactions in a way similarly described in this blog series. WHPounds Commercial Real Estate, LLC and/or its agents is/are in no way responsible for poor decisions made or the making of poor decisions, which may or may not be based on the information contained within this blog series. WHPounds Commercial Real Estate LLC and/or its agents strongly recommend the employment of proper, competent, and professional real estate and legal services for the leasing or purchasing of a commercial or residential property.
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