Spokane Regional Networking, Social Media, Professional and Business Development
The following comes from our ITRA affiliate office in Long Island, NY:
Leases are typically for long periods of time, often 5 to 10 years and more. Companies must not only plan for their present needs but for their future as well. To do this the CEO must determine his vision for the future of his company. Does the company see growth and hiring in its future or cutbacks due to a slowing economy? Are there possibilities for mergers, acquisitions or new products? Or is retirement a possibility?
Whether or not change is in the future the transportation needs must be assessed. A central location for the labor pool and clients is necessary. Access to CBD’s, major highways, train stations and airports should also be considered. If a comparison among states is being performed, school districts, affordable housing, taxes and quality of life should be taken into account.
Image of the future building is very important. Is the location to house corporate executives or back-office employees? Are clients coming to the building? Some buildings offer amenities such as covered parking, concierge, gym and lockers, cafeterias, childcare, card shops, personal trainers, etc. These buildings are the most expensive and considered “A” buildings.
Should a criteria be a “Green Building” designation? Green buildings provide reduced energy costs and tax benefits. Statistics have shown that Green buildings improve employee productivity reducing sick days and turnover. In some industries, the Public Relations value of sustainability and social responsibility may be priceless.
Finally, the budget must be considered. Obviously buildings with an “A” image or “Green” designation will be more expensive than buildings that don’t have these features. The budget analysis should include the entire term of the lease because leases are designed to offer lower rates initially but escalate over time. It’s the end of the lease that is always surprisingly expensive. However, smart initial planning will eliminate surprises.
Tenant and Buyer Representation Specialist