You're an expert in your line of business, not commercial real estate, so it's easy to get overwhelmed when you consider expanding your current lease portfolio. Start by focusing on these five concerns to make your search, negotiations and portfolio management simpler.
1. Providing a Mix of Space Types to Suit Working Needs
There is no such thing as a universally ideal office. What works well for one company won't be perfect for another, even within the same industry. As you scout out possible new offices and arrange the layout of your desired space, think about how your various teams work best. Some departments may require an open office floor plan that allows for easily collaboration and communications. Others may need the privacy and quiet of traditional closed office space. Having shared places for small and large meetings may also be beneficial.
2. Attracting and Retaining Talented Employees With Office Space
When you think about the kinds of things that attract Generation Y and Millennial professionals to companies and encourage them to stay to the long term, salary, benefits and perks may be first on your list, but your office space can also contribute to your recruiting and retention efforts. Young professionals will prefer offices in areas that are easily accessible and located near restaurants, bars, stores and service businesses. Brightly lit offices and green spaces can also increase your company's appeal to potential employees. Amenities like free parking, onsite dining facilities and employees-only gyms can also attract prospects and make them more eager to stay with your company.
3. Utilizing All of Your Available Space
The square footage of your office space is called usable for a reason. If you're not utilizing every single square foot, you are still paying rent to occupy it. When you're searching for new space, be realistic about your future needs. Over estimating growth can result in wasteful costs. Should you find yourself with ample empty space, consider subleasing to another tenant, moving off-site storage to your office or consolidating spaces to use more of what you're paying for.
4. Greening Your Workplace
Sustainability is a top priority in all industries today. Greening your business can enhance your brand image, appeal to shareholders, increase productivity and decrease your utility costs. Consider leasing space in an LEED-certified building or choosing an office that has been LEED-retrofitted. You can also install LED light fixtures, invest in a SMART thermostat and make other small changes to shrink the size of your company's eco footprint.
5. Managing Your Portfolio Optimally
If your company holds multiple commercial real estate leases, it's important that you manage your portfolio well. Periodically, you should audit your leases, assess square footage usage and survey your team about their overall satisfaction with your office spaces. To more easily manage operating costs, track renewal deadlines and streamline other property management tasks, consider investing in commercial real estate software. These programs can even help you optimize your portfolio to reduce expenditures and ensure that the spaces that you are leasing are the best fit for your company.
Here are a few other articles you might enjoy:
Subscribe to our blog for more CRE tips!!
