Making Educated Decisions About Your Business Space
What are my options?
If your current space satisfies your business needs, but you are approaching the end of your lease, consider renewing your lease. We can help you ensure the space is available and negotiate a new lease with the building owner.
The expiration of your lease offers you an opportunity to transform your business and create new efficiencies by relocating.
Why should I relocate?
If your current space is too small, too large, or inflexible, a new office can energize your organization and act as a springboard for improved productivity and operational cost savings. Additionally, market conditions may support the business case for relocation.
Brand Value Enhancement
The quality of your building and the tenant improvements in your office space speak volumes about your organization. A new building can strengthen your employees’ perception of your core values and elevate your brand in the minds of customers and other stakeholders.
With an improved work space, you will boost staff morale and productivity. Our market research shows that even subtle changes in the work environment create substantial gains in productivity, resulting in improved bottom-line financial performance.
How much will it cost?
The negotiation of rent and tenant incentives depends on the dynamics of your local market. In markets where over-development or economic conditions have created higher vacancy, this favors tenants. In other markets, low vacancy gives landlords the upper hand in negotiations. Contact your Colliers professional for the market trends in your location.
Tenant Improvement and“Make Good” Costs
Your entry and exit strategy to a lease can greatly affect the real cost of your commitment. Workplace design and tenant improvement costs should be viewed as an organizational opportunity—a well-plannedand executed office will adapt to your organization’s growth and changing needs and minimize churn costs.
Balancing your tenant improvement costs and their benefit to your organization is critical. In addition, “make good” commitments will affect your cash flow when exiting a lease. These costs are covered in more detail later.
When should I start?
Plan, Plan, Plan
Whether you decide to stay or go, knowledge is key. Understand your current situation, review other options, assess the marketplace context and negotiate with your current landlord to optimize the end result.
The period required to conduct a lease negotiation and relocate is three to six months at a minimum. Depending on the
size of your organization and current market conditions, you should begin this process 18 to 24 months prior to your
lease expiration. It can take two years or more to complete the lease and relocation process for large or complex assignments.
Whom should I involve?
Your internal steering committee should be led by a senior employee and supported by decision-makers and influencers including human resources, IT, divisional heads and staff. A single point of contact from your organization, matched with a single point of contact at Colliers International, is ideal to make the process run smoothly.
You may wish to conduct a survey of your staff to determine their needs, preferred work space amenities and location. Colliers can survey your staff to determine the impact of relocation on commute times and employee retention.
Professional real estate advice is a critical part of the project team. This will arm you with insight into the marketplace, your alternative options and the financial implications of the stay or go scenarios. A skilled workplace strategist and design professional will complete the team by providing knowledge of productivity-enhancing tenant improvements.