You are here

{FunnelCast Contributor} What is Happening in Orange County, California?

06/10/2014
commercial real estate blog, commercial real estate news, real estate news

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

Email: abuchanan@lee-associates.com

Phone: 714-564-7104

Follow Allen on Twitter @allencbuchanan

Find Allen on YouTube and LinkedIn

Be sure to follow Allen's blog as well, featuring his well-known Tuesday Traffic Tips

funnelcast, the news funnel, real estate news, real estate blogthe news funnel. real estate news, cre, commercial real estate, top real estate news

Share

Search

Featured Companies

Twitter Feed