Commercial Real Estate Book - Leasing Book Preview

long to notice these red flags are often forced, out of necessity, to continue to work in unfavorable environments. On the other hand, companies who get ahead of the process can have their pick of properties that are tailor-made for their employees, businesses, and futures. Even if you already know the area and size of the space you need, many other factors are at play. Many of those factors are based on the current market conditions, which a broker will help you understand. You may also be tempted to purchase your next office space, something we’ll discuss in Chapter 5. The evaluation phase will take the most time and energy from you or the person in charge of your search. Knowing the needs of your employees is a big factor in this phase, as is knowing their commute times and preferences. There are also many factors at play when it comes to looking at space, and proposing and signing a lease. The four basic costs in a lease are rent, operating expenses, escalations per year, and proportionate shares of real estate tax increases above a base year. But numerous other factors also come into play, such as pricing, time, and design. You also need to consider the fees, which many CEOs don’t put in their original budgets when they’re looking for space. Not that these are hidden fees, but there are just so many to account for that it’s easy to leave some out of your initial budget. The experience of a qualified real estate professional is essential when you’re looking to work with the best property management groups in your area. You don’t want to get stuck with a horrible owner or unresponsive firm. But you don’t know which groups or owners to work with. Doing research on your own is important, but you should lean on your broker to help you here.

3

Powered by