Posted 7 February, 2019 OBI BLOG
“It was never in the job specification”, “It just landed on my desk”, “I’ve never carried out this process before”. Here are some of the phrases we hear all too often when clients approach us for advice on their real estate strategy.
Have you ever been in the position where you are going about your daily business and your boss throws you in to disarray by challenging you to a task which sits outside of your comfort zone and skill set?
A property relocation or enhancing an existing workspace only comes along once every so often for most, therefore appointing a full-time property position is not a cost effective nor wise business decision. The result is that the task can be thrown to someone who may not have the experience or the time to deliver real value to the process.
Understanding of key processes and terms can be key to achieving the best outcome for your business, so it’s crucial you obtain sound advice.
Dilapidations – You may be asking yourself (especially on a first time relocation) what is this? Dilapidations is a tenants obligation to re-instate and repair the premises once the lease has expired. When entering in to a new suite which you plan to fit out or alter, it is imperative that you cash flow for a dilapidations liability cost which will be incurred at the end of the lease. It is important to protect your position and have a detailed knowledge of what exactly you owe and what you are not liable for.
Due Diligence – Competition within the world of real estate has increased significantly. It’s imperative you undertake the required due diligence to get best value in the market and make the most effective real estate decision. Offerings are now going far beyond just workspace with the likes of; gyms, coffee shops, lease flexibility, national/global reach, events space and more.
Commercial & Financial terms – You can search on websites and collate options, however are you really preparing all the key insights and intelligence on the building? It is imperative to ensure that the landlord is willing to offer you the commercial and financial terms you desire. This can be a huge time waster if you narrow down your options to a final shortlist only to find the landlords proposition does not align with your brief.
Partner with the right landlord – Is the landlord in question customer facing? Landlords ahead of the curve are looking to partner with occupiers to provide them with the correct infrastructure for growth to forge stronger relationships. There can be huge advantages for occupiers if they select the right landlord which will provide a service which is more than just space.
Digital Connectivity – In the top 3 most important requirements for occupiers when deciding upon a new workspace is ‘Digital connectivity’. Prop-tech business, Wired Score, are now rating buildings on their connectivity capability from Platinum to Bronze. Businesses are becoming increasingly reliant on connectivity with a number of operations moving to the cloud, this is one you need to make sure you get right.
If you are looking for advice regarding your company’s real estate strategy and fear that you have been handed a poisoned chalice, please feel free to pop us a call and we’ll be happy to help you through the process!