Allen Buchanan, one of the most knowledgable commercial real estate bloggers on the web, is joining FunnelCast as a weekly contributor. For his first post, Allen sticks to his bread and butter: location advice.
The one thing that every business has in common is a location! Whether a company does business out of a suite of offices, a manufacturing building, a retail storefront or the owner's basement, all businesses have a location.
Most frequently asked question:
The one question that I get asked more than any other is "what is my location worth?" Good news if you own your building. Property values have increased approximately 40% since January of 2013! Staggering! We are now at per-recession values. The up-tick in pricing has left our inventory of available buildings at less than 4%. Consequently, a buyer or tenant does not have many choices in the market for lease or sale. Our lease rates are starting to firm and increase as well...so if you are a tenant, the news is not so great...especially if you signed a lease in 2009-20011 and are facing an expiration this year. Chances are VERY good that your owner is "licking his chops" waiting to increase your rent. I will talk a bit about how to preempt this later in this post
Out of space:
Many companies have experienced astronomical growth over the past two years and are now "out of space"...not outer space...out OF space. So what should a company do if they are out of space but don't want to or cannot move. By the way, let's face it...moving sucks! This from a guy who moves companies for a living. However, a move is costly, disruptive, and rarely achieves the efficiency that the move was meant to provide. There are at least ten things that a company can do to postpone...sometimes indefinitely...a move. I would always suggest that a move be postponed whenever possible.
What moves you?
Certain circumstances demand a move...an acquisition of a competitor, a sale of the company, a change in the operation, a significant up or down size, etc. So, what is a company to do if faced with a move? The three pieces of counsel that I provide to all of my clients who must move are: Start very early and allow plenty of time for site selection (remember the vacancy), negotiation, occupancy approvals; engage great expertise; AND consider ALL of your alternatives.
Signing off until next week.
Allen C. Buchanan
By: Allen Buchanan
Principal | Lee & Associates
Follow Allen on Twitter @allencbuchanan
Be sure to follow Allen's blog as well, featuring his well-known Tuesday Traffic Tips