Archive for February, 2009

Great Deals in the Market on Office Leasing in Today’s Economy

Tuesday, February 24th, 2009

The economy is indeed bleak, but that doesn’t mean it’s bleak for everyone.  Business is booming for auto mechanics, cobblers and other people in repair businesses but for millions of people, it means closing up shop and applying for unemployment or perhaps down-sizing.  Either way, there is movement in office leasing and openings in both retail space and office space and that means great deals for people who are looking for space. Great deals on office leasing rates too: According to Grubb & Ellis, the average retail rental rate was up 1.7% in 2007, but is showing a big decline in rental rates- some instances as low as 10%, with a forecast for even lower rates. This is good news for new businesses looking for great deals on retail space or office space.

Landlords are Adjusting to the Times

Landlords are concerned with the decline in tenant sales- everyone is affected and owners are doing their best to keep their retailers and businesses there. New tenants will no doubt have the upper hand in negotiations with landlords and with commercial real estate agents, which can result in rent reductions and other perks for new businesses. With more attractive options becoming available all the time, forecasters believe that overtime, the market will reverse itself and with so many people taking advantage of attractive lease terms, potential tenants will correct the supply and demand discrepancy.

New Tenants Take Advantage of Other Move-In Deals

Commercial realtors can sweeten the deals on many office spaces by enticing tenants with move-in specials like:

  • Fresh coats of pain
  • New carpet
  • Deals on cubicles
  • First month free rent
  • Deals on cleaning services

It’s a tough time for so many people who are losing their business or jobs but the silver lining for a lot of other people is the golden opportunity to start a business and take advantage of great rates, or downsize into a less expensive office space as well as take advantage of first rate deals on move-in specials. As with everything in life, what goes up must come down, so too will the economy and commercial real estate options.

About the author: Melissa Peterman is a web content specialist for Innuity for more information regarding office space or  office leasing Go to Royal Commercial.

Tags: ,
Posted in commercial real estate | No Comments »

You’ve got a Great Product- Now Where do You Sell it?

Tuesday, February 17th, 2009

You have designed a great product, you have a business license and all your ducks are in a row.  Besides your online store, you need to get a retail space to store inventory as well as sell your product. Before you make that move to rent a retail space, there is a lot to know.

Before You Open up Your Retail Space- Do Your Homework

Before you sign the dotted line on just any retail space, make sure you do your homework or better yet, hire someone to do the homework for you! Think realistically, if you over-commit, you could be in over your head before you even open the doors.

  • Make a list. What size space do you think you will need to start with currently?
  • How much space will you need in the future? What is your business’s projected growth?

Think About retail space Location

Many people say that location is everything. Before you settle on one particular location make sure you research each retail space you are thinking about. Here are a few things to look for:

  • What is amount of car and foot traffic in front of each retail space?
  • Find out who the previous renter was, did they do any unseen damage to the place? Why did they leave?
  • Does the rent match up with other retail spaces in the area?
  • Where is your closest competitor? If they are going to be a neighbor, perhaps it’s not the ideal location

Think About Your Audience- Where are They Located?

  • Does your location get local area traffic or just tourists or both? Depending on your product, you may want to be in a neighborhood or near a busy tourist destination.

Depending on Your Product, Could Your Share Space?

  • If you have large furniture to sell, you won’t likely want to share your space with anyone else, but if you are looking to sell your handmade scarves, you may want to look into a smaller retail space, like a kiosk or a shared space with someone else who is looking to share.

Research Restrictions Before it’s Too Late

Some retail spaces say what you can and cannot do in regards to signs, flower boxes and other décor. Be sure and find out what types of restrictions come with the retail space. Other things to consider:

  • Is there ample parking? Or bus service near your business?
  • Are you allowed to have a large sign above your business?
  • What is the maximum occupancy?

If all this seems like way to much to think about, while you are trying to work on other aspects of your business, you can hire a commercial real estate agent who helps small businesses find what they are looking for in regards to retail space.  Hiring a professional to help you find a retail space could save you money in the long run- they know where to look, what to avoid and how to talk terms. Plus, with someone who knows about commercial property, once you have decided on a place, you’ll have a connection to painters, movers and handy men once you close on a deal- and what is not to like about that?

About the author: Melissa Peterman is a web content specialist for Innuity for more information regarding retail space go to Royal Commercial.

Tags:
Posted in commercial real estate | No Comments »

Negotiating in Office Leasing, the Perfect Office Space

Monday, February 9th, 2009

The office space that you work in every day is one of the largest expenses for your company. One way to control this cost is to shop around and utilize some simple negotiating skills to get the best  office leasing option. If you can take some time to get yourself into a good lease you could save your company enough money to make a very big difference.

No office lease is standard so you need to negotiate with each one. The term of the lease is one of the first concessions when you are negotiating. Your needs may change over time so keep this in mind when thinking about how long you want to stay in the same location. Also think about how much space your office has available. Make sure that you have enough room to grow if necessary.  You may also want to consider getting the option to renew your rent at a fixed predetermined price. Think about the time you will need in the space but also about the time you may want when your lease is up.

Look into what the landlord charges for the extras. Some of these items may be maintenance, HVAC, general operating costs, repairs, improvements or replacements. Some leases may require that you return the office to the condition it was in when you first moved in.  It could be to your benefit to get a cap on the amount you are charged for all the extras because they can add up rather quickly. Improvements in the space may also require their buyoff so make sure that you understand what the lease says regarding their approval to change the space.

Unfortunately, you can’t generally negotiate a lease with a fixed rate over a long period of time. Usually there are annual increases based on a specific percentage. Perhaps you can negotiate how many years it is before this kicks in or think about asking if you can get a cap on the amount of the increase or maybe a set amount each year rather than a percentage.

Think also about the flexibility you may need in your space if you think you may need to undergo a merger, reorganization or subletting. There are so many things that could change in the years to come and it is important to consider all the options when signing your company up for a new lease. This can really make a difference in the future.

Negotiation will be the key to success when getting locked into a lease for your company. Take the time to study up on some of the areas that you can ask questions. Study the fine print so that you know all the options you have in the building and with your office space. If you are locked into a lease for 5-years you never know what might happen in that time. Plan ahead – project where you think you might be in that amount of time. Look into how you might grow and change so that you can predict the best lease possible. Don’t be afraid to ask for what you want – you might just get it.

About the Author: Rebecca Beckett is a freelance writer for Innuity. If you would like more information about office space or office leasing go to Royal Commercial.

Tags: ,
Posted in commercial real estate | No Comments »

More Than Location, What is Inside Your Office Space Also Matters

Monday, February 9th, 2009

What does your office space say about your business? Or it’s employees for that matter? Besides where your office is located, how your office is set up is just as important.

Feng Shui

Some people swear by Feng Shui in their office to promote harmony and positive energy. The way you position everything from the chairs and desks to plants can all make an impact on creating the right energy and the right office space vibe for employees and clients. Eliminating dead end spaces, removing unused furniture and clutter, adding a fountain and special lighting all add to a more peaceful and harmonious office space.

Cubical layout

Are you making the most of your cubical space? Are their desks with no bodies in them or rows and rows of high walls and no room for communication? The way you have your cubicals laid out can either improve or destroy a good office space. Create one day, probably on a Friday and spend half of the day re-organizing desks and cubicals. When you rearrange your cubicals, you can often let more light in, open social interactions and provide a positive environment. Breaking down cubical walls and opening up those spaces allows for movement and removes stale and dark energy.

Green space

Is there an area with plants or a common area with windows overlooking a garden or patio? Offering up beautiful environments-even if it is just two couches with potted plants, gives your office new life and offers employees a place to regroup, eat lunch or just socialize. A green area can even be something like a fish tank with a brightly colored floor rug.

Lounge Area

If a green space isn’t possible at your office, a makeshift lounge area may be possible. A place with a coffee maker, comfortable couches or chairs and perhaps a video game area or ping pong for stress relief is always appreciated. Instead of employees relaxing online at their desks, lounge areas or green spaces gives employees a mental break and recharges them for the next round of tasks.

Fully Stocked Food, Office Supplies

Providing filtered water, coffee and creamer and snacks are always appreciated at work. Showing your staff that you appreciate them and the hard work they are doing shines through when you can offer a little bit more than the basics. Enough paper, ink, staples and pens should go without saying, but some offices are out of touch. Not providing the basic necessities to function as an office can lead to bitterness, lack of motivation and low morale.

Whether you invest in Feng Shui, a fish tank or pizza on Fridays, the effort and investment that you put into your office space will no doubt come back to you tenfold. It’s not just the location of your business, it’s also what you put into it that matters.

About the author: Melissa Peterman is a web content specialist for Innuity. For more information about finding the right office space go to Royal Commercial.

Tags:
Posted in commercial real estate | No Comments »