Business Analysis = > Tenant Rep

Corp Advisor(Post updated 01/26/2019) If your COO thinks its time to change the space your business uses, a great deal, in a seemingly good space, could become a (operating and financial) debacle you’ll seethe from long-term. (i.e. bad layout, a long inflexible lease, construction cost/time overruns, poor construction finishes, unexpected extra fees in the monthly rent bill). Blah, blah, blah you say? I’ve seen it happen many times; some clients were referred to me to solve such problems with their space.

A space debacle is avoided through planning – AND – using time to your advantage. When neither of these two elements are used, you pick the short straw and overpay. Analyzing your business carefully, to identify its needs [from workflow] and resources, become the baseline to negotiate the deal that meets the operating needs of your company.

Basic “Business Analysis” questions to ask:

  • How is the business operating today from its space?
  • Does the space facilitate productive workflow for ALL your staff (from baseline workers to C-level executives)? Is the work environment functionally collaborative and comfortable?
  • Does the space layout, location and rent bill foster productivity and profitability?
  • Can your space size change as your business does?
  • Does your office furniture, equipment and phones foster your comfort, efficiency and work pace?
  • Does your lease (or sublease) protect your occupancy rights? (this is more a business term that legal advocacy guides you to secure).

These questions are basic yet with privately held businesses, I’ve often seen little thought, planning and execution done in 24+yrs as commercial Tenant Rep. The best plan to change your space is a flexible one that’s able to make reasonable compromises as they arise. Identifying why your business is failing to meet executive vision, with worker comfort, leads to a baseline of expectations for new space. Let your Tenant Rep interview executive management, mid-management plus a few line workers; the data gathered will lead to an understanding of information flow, what defines a) a comfortable, efficient working environment, b) flexible occupancy, c) a flexible lease, d) sufficient utilities to meet operating needs.

If your business occupies 7Ksf [or more] of space, budget at least 2 years prior to occupancy to address your change vision at a leisurely pace; that puts time to your advantage to secure the right deal for your business (vs. a good deal for the landlord).  A virtual test-fit (1) of your space helps to create a short list of spaces/properties to focus on.

If you agree these suggestions are sensible for you, request a free 45 minute consultation with me by clicking the link at the right. Please put in the subject line “Business Analysis meets Real Estate.”; I reply within 24 hours. We hold a substantive face to face conversation, and see if our personalities are compatible to work with each other. Thanks for reading, perhaps I’ll hear from you soon. ###

  1. Kirsch, B. (2016). The value captured through a faster tenant test-fitting process, REFM, 03/15/2016.

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