REoptimizer^® Blog

In commercial real estate, a longer lease will usually give you a better rental rate, but many companies are hesitant to opt for a lengthier lease due to worries they'll end up in a space that doesn't suit their needs and be locked in. To decrease your risk of making a mistake when you're selecting a building to lease, do the following:

Getting ready to negotiate on a commercial lease? Many business owners are surprised at how long it takes to arrive at agreements and complete lease transactions, but the process can be smoother and simpler when you follow these simple tips:

If you're used to leasing office space, industrial properties can be surprising. Instead of worrying about glass line, lunchtime amenities, and how many workspaces you can squeeze in a floor cored by elevators, you end up having to worry about aspects of the building that you probably never considered with office space. After all, it's safe to assume that any office space can power laptop computers, maintain 70(ish) degree temperatures and support people and furniture. In an industrial building, these and more factors are all important parts to consider.

The saying bigger is better applies to a lot of things, but office space isn't one of them. Every square foot of office space costs you money, so the last thing you want is to go unnecessarily big and raise your rental rates as a result. As you consider the commercial leases your company holds and work to optimize your portfolio, be on the lookout for these signs that you may be ready to consolidate and cut down on office space:

With the proliferation of co-working space providers like WeWork, some companies are considering abandoning their traditional office space. Co-working environments have some unique benefits, but they are unlikely to completely replace traditional offices. After all, they represent an evolutionary step from the executive suite, and those facilities haven't crowded out regular tenancy.

With rents going up and interest rates continuing to post rates that are at or near historic lows, the balance might seem to have shifted to the latter option in the lease vs. purchase decision. However, leasing remains a strong option for many companies.

The "Business 2.0" punditocracy has been posting dire blog posts for years claiming that office space is obsolete. After all, office space is expensive, employees don't like commuting, technology enables anyone to work from anywhere, and jobs are fluid. Those four assertions are all true. However, they don't add up to the obsolescence of office space. In fact, modern business is rediscovering the value of having a central place to work and of having teams together. They aren't pining for a more simple past, either. Instead, controlling office space as a tenant or owner makes good business sense in the twenty-first century. Here's why:

When members of corporate real estate teams are empowered to function independently, your company is best positioned for success. Fully empowering employees involves considering a number of elements, but by making simple changes, instituting the right policies and investing in the right people and technologies, you can put the power to succeed in the hands of your team.