Leases are often landmarks in the lifetime of a business, marking a significant investment of time and resources in your building’s physical space, which will have an impact on your business long term.
A lease is often the second-greatest expenditure for a business after payroll, so it must be more than a cost center. It can support business success in these four areas:
1. A lease can allow nimble strategic moves. What will your company look like in five years? Seven? 10? Many companies experience unexpected growth or contraction from market cycles, acquisitions, new product or service growth, changing leadership and the changing competitive landscape.
A real estate professional can help you assess how long-term factors such as these—even if they are unknown now—will affect your current lease scenario. A broker can bridge the gap between landlords and tenants to help business owners retain flexibility to make strategic moves that make sense for their business, with your lease terms supporting rather than constraining these decisions.
2. A lease can be transformative for a business brand, elevating your image through the building’s own prestige or through proximity to other top brands or service providers. For example, many businesses that pride themselves on sustainability are choosing green buildings and energy-efficient options to enhance their overall brand image.
3. A lease can unite teams for greater productivity. Through careful space planning, businesses can engineer how their employees interact both professionally and casually, creating unexpected collaboration and input that can spur creativity, enhance product design, accelerate a project and improve corporate culture.
4. Finally, the three most important factors in real estate are location, location, location—location for clients, location of resources and location of employees. Ultimately, the best location choice takes into account the entire business strategy, not just financial requirements.
By: Jeffrey Weil
Jeffrey Weil is an executive vice president for Colliers International Walnut Creek. Mr. Weil has specialized in the sale and leasing of commercial properties for 38 years and has achieved CCIM, SIOR and NACORE’s Master in Commercial Real Estate Services with Honors (MCR.h) designations.
Email Jeffrey: firstname.lastname@example.org
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