#9: HOW TO SELECT THE RIGHT OFFICE LOCATION FOR YOU
"Work and play describe the same
things under differing conditions." - Mark Twain
Where you locate your office, in what part of the city, in what type of building, on which side, on which floor, all can have an impact on you, your employees, and your customers. Your office location, literally, can define your company.
The first decision, of course, is in what part of the city.
In Memphis, although most Class A office buildings are in the Poplar East Corridor, tenants have the option also of Class A buildings in other suburban areas of the city, as well as downtown. Factors to consider in choosing the right geographical area include convenience for existing and future employees, accessibility for customers and suppliers, security and safety, traffic congestion, and company image.
Don't lose valuable employees
Companies often experience the loss of valuable employees when they move a significant distance from their current locations, or to any location that isn't convenient, or that may be considered in an unsafe area, or require employees to drive through an unsafe area. If customers come to your office, a location that is convenient for them to do so can be critical. If you require short delivery times of your suppliers their convenience also must be considered.
Many tenants in Memphis have moved to the Poplar-Ridgeway area for "convenience" only to find that all-day heavy traffic and grid-lock rush-hour traffic often turn the area into a giant parking lot. Many suburban business centers around the country have become even more congested than downtown areas.
The image projected by your office location also can be critical, particularly in certain business categories such as law and advertising. In such cases the existing image of the building you choose, its façade, lobby, exterior lighting can be extremely important.
You may not need Class A
Indeed, economics will be a major factor. While many businesses can not afford Class A building space, many don't need it. Many substantial Class B buildings are available at considerably lower rents that may be more than adequate for the majority of companies.
Some tenants who need only 6,000 feet want their own floor, and can be accommodated in smaller buildings. Some tenants may even want building title identity, which is negotiable in many buildings, especially smaller, Class B structures.
When you get down to comparing individual buildings in an area other factors enter the equation, such as parking, safety, electrical capacity, floor load-bearing capacity, room for expansion, building management, and the absence of asbestos. Services within the building, such as a deli and quick-print service are great conveniences. Indeed, many landlords subsidize small restaurants for tenant convenience.
If rent is a critical factor a tenant should be aware that negotiating lower rents depends on a tenant's clout. The larger the tenant, the more prestigious, the more clout he wields. Market conditions are a leading factor in rental rates, which can fluctuate as much as 30% in good or bad times. So, timing is very important.
Develop many options
Most important to any tenant looking for new office space is that he develop as many options as possible. For even the most real estate-savvy tenant there are always opportunities about which he may be unaware.
By retaining your own, tenant-exclusive broker you can be sure of maximizing your options without being steered toward properties in which he may have a vested interest.
Every landlord budgets in your rent an amount for brokerage commissions. Since you're paying for it, you should see to it that at least some of this money works for you, rather than going 100% to the landlord's broker, whose interests are the landlord's, not yours.
MalmoMemphis Real Estate represents office tenants. When we represent you there
will never be any question whose interests are paramount in
negotiations. We are your expert, independent advocate.
The 'Tenant's 10-Point Guide to Leasing Commercial Space' is copyrighted
by MalmoMemphis Real Estate, Inc., (MMRE) and may not be reproduced
without the expressed written consent of MMRE, and the inclusion of notice
that the material is 'Copyrighted by MalmoMemphis Real Estate, Inc.' |
