Renew or Relocate Guide: Phase 2 – Selection
If you are just joining us now, check out PHASE 1 of the Renew or Relocate Guide.
Whether you are relocating across the hall, across town or across state lines, we understand the importance of site selection.
- What is your incentive to choose one location over another?
- How does each decision impact the future performance of your company?
- What office is best suited for your company to drive revenue?
- Can you identify and secure the right location when demand outstrips supply?
In competitive markets, speed to market is critical, seconds matter. It pays to have an advocate that can deliver speed to market in order to capitalize on opportunities. The difference between locating a new facility in time and being forced to renew or holdover can cost tens of thousands of dollars on one location.
Here is Phase 2: Selection of this process
Negotiate your lease
It is crucial that you understand all of the costs and risks associated with each property along with the terms you’re agreeing to.
Insist on future protection clause in case your needs change.
Perform proper physical due diligence so you’re not surprised by building issues later.
Phase 2: Dangers to avoid
Not thoroughly inspecting a building
Many tenants overlook one of the biggest liabilities in a new lease: the base building systems and condition of the premises, i.e. the physical condition and safety of the building. Poor infrastructure is an obvious red flag but building enhancements can be just as concerning. When a landlord makes a significant improvement to their building (such as adding a new roof or replacing the HVAC), those associated costs are often billed back to tenants over the duration of the lease.
Lee Advantage: A proper inspection and lease protection can prevent a large liability from a capital improvement project.
Putting all your eggs in one basket
Real estate is often an emotional decision. When viewing locations, you may find yourself saying “this space is perfect; we have to have it.” But too many companies put all their effort into a single building, and for one reason or another, it falls through. They’re then forced to go back out to the market and start from the beginning.
Lee Advantage: Always have a suitable backup. Even when you believe you’ve found the perfect spot, you shouldn’t stop searching. Finding a suitable alternative is critical.