Apex Commercial Properties - A Few Thoughts

The 10 Most Important Guidelines When Leasing Space

5/7/2015

Business owners go through the leasing process all of the time. The problem is, it may be three, five, or maybe ten years or more since the last time they had to deal with the leasing process. Here is a guideline for all business owners to learn from when considering leasing space.

1. Leave yourself enough time

Plan well ahead of when you think you will need to start considering space for your business, otherwise you may be putting yourself in a poor negotiating position. The more lead time you have, the more options you can leverage. Typically having three or four suitable options to vet is recommended.

2. Have a clear understanding of your needs

You will need to spend time thinking about the needs of your business not only today, but over the next few years. You probably expect your company evolve over this period, so you should consider making sure your future needs are being met as well as your current ones.

3. It isn’t always about the money

Far too often, business decisions are made based entirely off the bottom line. Consider all the other implications that a location can have on your business. How functional is the space for your staff? What image does it convey to your clients? What is the impact on employee retention and growth? If you lost half your staff due to a poor location choice, what is the real cost then?

4. Appoint a project Leader

This may be the single most important consideration when considering space. If this isn’t going to be you, make sure you appoint someone as a single point of contact to get the right message out and facilitate all communications properly. Input from all your departments plus advice from your attorney is required, however someone should be taking control of this process. Make sure information is gathered in an organized manner so it can be communicated amongst the necessary decision makers for input, but don’t leave decisions on space selection to a vote; all parties will be selfishly interested in what works for them. Give authority to whomever you appoint.

5. Correctly understand your size needs

The workplace is evolving. Streamlined manufacturing, mobile workstations, shrinking private offices, open concept offices, green spaces, etcetera etcetera. Before viewing options on the market, take the time to plan out your space requirements, whether it means a shift from the cubicle farm to open concept or a change in the manufacturing process. By planning ahead, this will ensure you are looking at the right amount of space for the culture you wish to build.

6. Allow time for Build Out

When you find a suitable space for all of your needs, make sure you leave enough time for the space to be built properly according to your specifications. There are any number of complications that can arise, from permits at the city level to interference with holidays. Ideally, you will have the space ready with plenty of time to comfortably move in and get all your systems set up, whether this is just carpet and paint or a full rework.

7. Strike while the iron is hot

A great deal of time and effort is invested in the process of selecting suitable locations. Once you have located viable options, move quickly towards the finish line. Landlords will continue looking for other tenants and better deals until you lock down a space. Follow the golden rule: Time kills all deals.

8. Plan to space plan

No two spaces are exactly the same. Items like window location and column spacing can greatly impact how functional and efficient a space will be for your use. If one space can fit more employees or allow for more production capabilities, then foot for foot you are getting a better value there. If you are uncomfortable planning out your space, consider using a professional space planner.

9. Allow for Growth

You aren’t in business to shrink. Most companies will expect their business to grow over the next five years. It is important to consider how your business is likely to change over the course of your lease. Consider current and future build out. Flexibility with your landlord and options for movement and expansion will help alleviate some concerns.

10. The best opportunities may not be available

Although there are many spaces available on the market at any given point, there may only be a few that fit your needs, if any at all. The more unique your requirements, the less options you will have to consider. If you do require a more unique request, you will want to allow more time in the search process and be prepared to be flexible in putting a deal together. For the absolutely perfect space, you may need to wait for your space to come on the market, or have your agent pursue options that have yet to reach the market.

0 Comments

The Day I Quit

4/22/2015

2 Comments

It was Friday the 13th. My mind was made up, and there was no going back now. I remember it wasn’t particularly cold outside, especially for a Minnesota February day. I know because I had been going in and out of my office, bringing items from my desk to my car. Plant, artwork, notes, pens, and my giant whiteboard. It was happening, I was quitting my job.

It was such a rush of emotions that day. It was happiness, sadness, fear, excitement, guilt; basically a bittersweet shot of espresso with emoticons floating in it that I was about to consume in one big gulp that afternoon.

I thought I had it all planned out. My broker was going to be at a showing for a few hours, west of the metro in a small town called Glencoe. I was going to have my office prepped for when he got back to the office. I was going to have a long conversation about why I was leaving, allowing him the chance to ask me whatever he wanted. We were going to remain friends. But as the saying goes, “The best laid plans of mice and men…”

As fate would have it, there was a funeral that day. And just my luck, my broker was attending that funeral. It turns out that the funeral was not for anyone particularly close to him, but a funeral is still a funeral, and doesn’t exactly set a happy mood in my book. Nevertheless, I couldn’t turn back. I sat patiently at my now stark office, looking very similar to the day that I started. No artwork, no pens, no custom hand-written notes from my wife attached to the pictures of us. Just a monitor, mouse, a chair and walls of taupe. I watched the minutes pass, waiting for his return.

After what seemed like an eternity, he came back to the office. I was ready. There was only one other person left in the office, and I had already explained to him that afternoon the reason why there was no personal effects left of mine at the office. My broker came back towards me, looking a bit confused as to why my desk was so completely vacant. “Are you quitting?” I managed to eek out a “Yup.”

He turned back around, walking towards his office. I followed him, no instructions needed. I sat down in the chair that I had sat in hundreds of times before. We both had the thousand yard stare that I imagine comes with PTSD. I explained to him that I wanted to venture off to do my own thing. I thought that maybe after the many conversations we had over the past few years of changes that I thought should be implemented at the brokerage that he could maybe understand. Maybe he did, maybe he didn’t. He responded “Well, I guess I should take this as a compliment, because I must have made this look too easy.” I asked him if he had anything that he wanted to ask me. I knew the answer was no even before he said it. “I hope there is no ill-will between us” I said. He responded “Honestly, I don’t know.” Those words rang in my head like a church bell. It was clear that I had just shattered his world. I was his senior agent, and had been with him more than twice as long as anyone else previously. We shared not only an office, but a friendship.

I stood up at this point, not knowing what to say. I remember reaching my hand out to shake his hand. I stood there for about 30 seconds. I think I must have blacked out, because the rest is a blur. I don’t remember if we shook hands or not, but I know that I ended up in my car in the parking lot. As the saying goes, “You don’t have to go home, but you can’t stay here.” Well, I couldn’t go home yet, since I still needed to pick my wife up, who worked about a mile away.

I sat in my car in her company’s parking lot for a while afterwards, having a very pleasant conversation with one of my favorite clients. He congratulated me and was excited for me as well. He reminded me that it wasn’t about where I was coming from, but where I was going. I wasn’t doing this to be spiteful towards anyone, but was doing it to make my future what I wanted. We talked for about the next hour and a half about life, brewing beer, skiing, business, and I’m sure other topics that I probably don’t remember. Other clients of mine that I spoke with afterwards said the same thing, congratulating me, asking me what they could do, saying that they knew that I needed to do this for myself.

It was Friday the 13th. It was one of the most terrifying days of my life, but I had survived. Just like getting off on the most intense roller coaster you’ve ever been on, I was relieved to have it over with. That is how I started Apex Commercial Properties.

It turns out that almost a month later, on Friday the 13th in March, my wife also quit her job. But, that story is for another time, and for her to tell.

2 Comments

The 10 Most Important Guidelines When Leasing Space

The Day I Quit

Ryan Hoveland - Broker at Apex Commercial Properties

Archives