The Anatomy of Commercial Real Estate Decisions

Real estate is often times an unspoken obstacle of business ownership. Selecting a space that is “just right” for your company is no small feat. Furthermore, as your company evolves, so do your property requirements – whether you’re facing internal challenges like changes in human capital and spatial needs, or external challenges like city-specific business policies or taxes, consulting with your Systems professional can answer the key questions that will help you make the best possible decision for your company.

Questions to consider:

  • Does your existing location adequately support the day-to-day operations of your business?
  • How is the size of your existing location? Do you find there being excess/unutilized space or do you find yourself running out of space?
  • Is the business climate in your city favorable or unfavorable to your goals?
  • Are there any city-specific business policies and/or taxes that are causing unnecessary burden to your business?
  • Does your current location contribute at all to employee retention and would moving impact that?
  • Do you have a feasible budget to relocate?
  • Does the building configuration of your existing space contribute to your business flow and would you need a similar configuration at a new location?
  • Would moving to a new location hinder transportation to/from your business and/or require your staff to commute from a considerable distance?
  • What neighborhoods would you consider moving your business to in order to keep yourself within reasonable proximity?

Speedbumps to avoid:

  • Not having clear real estate objectives
  • Thinking exclusively in the “short-term”
  • Basing decisions strictly on the current financial climate
  • Starting your lease renewal or relocation process late
  • Moving too slow and missing advantageous opportunities
  • Failing to appoint a single point-of-contact or project manager to spearhead this process and ensure accountability
  • Underestimating the time requirements for permits and entitlements
  • Undervaluing the cost of vacating your current location and restoring it’s conditions pursuant to your lease