IDENTIFY NEEDS
After a broker has been selected, a discussion between executives and their broker will take place to determine the next course of action. Each plan will be different depending on the type of transaction the business is looking to make. Some questions business executives need to consider before making a final decision include:
· What type of space is the client looking for? As mentioned above, different spaces have different sets of requirements, and a business may be looking for multiple types of space to use. For example, a manufacturing company may require industrial space for research and development, retail space to showcase their products, and office space to house their executives.
· Is there a need for a short-term option? A business executive may be operating under a compressed timeframe. In those cases, it may be desirable to secure a shorter-term lease to give the business more time to implement a long-term strategy. There are several ways to accomplish this, including short-term leases (less than three years) and month-to-month leases and subleases, as well as per-use office and conference facilities (Regus, WeWork, Impact Hub) in the area that may be ideal for satellite, smaller and/or start-up companies.
· Is there an existing location? Is there an option to renew? Planning and moving takes time and often significant financial resources. If there is an option to renew in an existing location and a company does not need to take up more space, renewing a lease may be the best option. However, if a company is experiencing significant growth and the location is no longer meeting their needs, business executives may opt to expand or relocate to a facility that can accommodate growth.
· Could the business consolidate into a single or smaller facility? There can be a number of reasons for this, but if the option is available it may make financial sense to move from multiple buildings into just one.
· Is it desirable to purchase a facility at this time? Upkeep and maintenance on a purchase should be considered.
Short term vs. long term leases
SHORT-TERM LEASE or sublease
· Ideal for satellite, start-ups or smaller companies unsure of growth
· Allows businesses to react quickly to changes in real estate market
· Tend to be more expensive
· Subleases may be possible in desirable spaces that are already fully leased
LONG TERM LEASE
· Offers stability in terms of location and rates
· Ideal for companies that rely on location (restaurants, medical professionals)
· Longer term improvements may feel dated over time.
After careful analysis and weighing all options (usually about 30 days), the process of site selection can begin in earnest. This usually begins with compiling market research on alternatives based on site-specific criteria. For example, a business executive is looking for 10,000 square feet of industrial space with grade level loading and good truck access somewhere south of Seattle. A broker would research and pull properties that match that criteria and provide you with a tour package presenting the advantages and disadvantages of each space. Normally, this information is gathered through paid multiple listing services. A multiple listing service, or MLS, is a company that collects and distributes data on real estate transactions to subscribers, usually brokers and brokerage firms. This simplifies market analysis when brokers are putting together a deal. CBRE will usually pull information from many different MLS companies, such as CoStar, Commercial Brokers Association (CBA), and LoopNet, to get the best possible cross-section of available information and properties.
Additionally, brokers will often have knowledge of pocket listings or potential future vacancies. These are properties that are not shown on multiple listing service site but are available. The reasons for keeping a listing private can vary greatly, but a good broker will utilize every opportunity to ensure that a business executive is given the best possible choice in alternatives.
· What type of space is the client looking for? As mentioned above, different spaces have different sets of requirements, and a business may be looking for multiple types of space to use. For example, a manufacturing company may require industrial space for research and development, retail space to showcase their products, and office space to house their executives.
· Is there a need for a short-term option? A business executive may be operating under a compressed timeframe. In those cases, it may be desirable to secure a shorter-term lease to give the business more time to implement a long-term strategy. There are several ways to accomplish this, including short-term leases (less than three years) and month-to-month leases and subleases, as well as per-use office and conference facilities (Regus, WeWork, Impact Hub) in the area that may be ideal for satellite, smaller and/or start-up companies.
· Is there an existing location? Is there an option to renew? Planning and moving takes time and often significant financial resources. If there is an option to renew in an existing location and a company does not need to take up more space, renewing a lease may be the best option. However, if a company is experiencing significant growth and the location is no longer meeting their needs, business executives may opt to expand or relocate to a facility that can accommodate growth.
· Could the business consolidate into a single or smaller facility? There can be a number of reasons for this, but if the option is available it may make financial sense to move from multiple buildings into just one.
· Is it desirable to purchase a facility at this time? Upkeep and maintenance on a purchase should be considered.
Short term vs. long term leases
SHORT-TERM LEASE or sublease
· Ideal for satellite, start-ups or smaller companies unsure of growth
· Allows businesses to react quickly to changes in real estate market
· Tend to be more expensive
· Subleases may be possible in desirable spaces that are already fully leased
LONG TERM LEASE
· Offers stability in terms of location and rates
· Ideal for companies that rely on location (restaurants, medical professionals)
· Longer term improvements may feel dated over time.
After careful analysis and weighing all options (usually about 30 days), the process of site selection can begin in earnest. This usually begins with compiling market research on alternatives based on site-specific criteria. For example, a business executive is looking for 10,000 square feet of industrial space with grade level loading and good truck access somewhere south of Seattle. A broker would research and pull properties that match that criteria and provide you with a tour package presenting the advantages and disadvantages of each space. Normally, this information is gathered through paid multiple listing services. A multiple listing service, or MLS, is a company that collects and distributes data on real estate transactions to subscribers, usually brokers and brokerage firms. This simplifies market analysis when brokers are putting together a deal. CBRE will usually pull information from many different MLS companies, such as CoStar, Commercial Brokers Association (CBA), and LoopNet, to get the best possible cross-section of available information and properties.
Additionally, brokers will often have knowledge of pocket listings or potential future vacancies. These are properties that are not shown on multiple listing service site but are available. The reasons for keeping a listing private can vary greatly, but a good broker will utilize every opportunity to ensure that a business executive is given the best possible choice in alternatives.