Tips for Tenants – what not to forget!
Understand
Research
Right people
Time
Plan
Communicate
Budget
Evaluate
Negotiate
Tenant Representative
There are a number of key points (noted below in bold and italic for effect!) that relate to the success – or otherwise – of a properly executed, cost effective corporate move. Whether it’s an office, studio, warehouse, factory or something a little more unusual, the following points are crucial – especially if you are the one carrying the buck!
Make sure that you and the organisation understand what is required. The buy-in of the Board, Senior Executives and key staff is critical in the task at hand. If you’re planning a move, do some research first and determine what it is that you are looking for, including changing workstyles, locations, cost of rents, access etc., so as to inform the business’s decision making process.
Make sure you choose the right people to work with. There will be many who will offer up advice – some of it for nothing – be certain that these groups have no other agenda. For instance if you seek the advice of a Real Estate agent to assist source new premises, you may only have access to properties being marketed by that particular agent and if so, there could be a fee exchange from the Lessor to be aware of – this is not a crime, it’s the way Agencies work, but a Tenant Representative will work for you and you alone, scouring the entire market.
Give yourself plenty of time. Regardless of the size of your project, there will be time related factors out of your control, such as the market search, the availability of suitable premises, statutory planning & permits, finding consultants and contractors to help in the project, as well as making sure the business and the important people (the staff) are given time to understand what is going to happen.
Plan effectively. Make sure you understand the entirety of what you are setting out to do. This will rely on your ability to orchestrate many disparate groups both inside and outside your business. Step out exactly what you need to achieve and always revert back to the key points.
Once you’ve got this far, it’s of the utmost importance to communicate effectively with the stakeholders – this is where some moves come unstuck, as staff need to be consulted about their expectation and requirements, workstyles and locations need to be planned and discussed, your customers and suppliers will need to know where you are going and statutory bodies must be advised. There are many things that need to be covered!
You really need to understand the budget for what you are intending to complete – both for your approach to the Senior Executive for CapEx and OpEx and planning for its effective spend. In your research, you will have found out details like the costs of construction, fitout, furniture and fittings, connections, IT set up and the like as well as unseen items such as design, permits, engineering input, etc.
Evaluate your options for location to ensure you are placing your business in the optimum space for all the reasons you should know about – access for staff, access for your customers, promotion of the business, local amenity, cost, parking – and the list goes on. We use a matrix to do this in an objective fashion and overlay the results with the financial considerations.
In dealing with the various proponents that you will engage with, negotiate effectively to ensure that best outcome for your business – recognising that an optimum outcome is one where all parties are at least satisfied if not entirely happy! Lease negotiations can be complex and take time – be sure you know what is appropriate and don’t overstretch the relationship with a potential Lessor early! You need to build effective, long term relationships.
An experienced Tenant Representative can help with as much or as little of the above as you see fit. Think Property CRE Solutions has been working in this space for well over a decade – right across the country and into New Zealand. Our clients get us back time and time again, as we provide independent, professional advice and services that in most cases will save you more than the fee we charge.
We are Tenant Advocates
Call Brian +61 417 011 580
www.thinkproperty-cre.com
brian@thinkproperty.net.au
