For whatever reason, your current office doesn’t work. So, let’s not waste any more time and talk about getting you in a new one.  

As tenant reps, we know the right commercial real estate is an invaluable asset. We have seen how our corporate clients have benefitted by relocating. New properties have introduced lower rent prices, better features, and millions in savings over a lease term. Find out how you can too.

Learn the three things you can do to prepare for your office search:

1. Define Your Property Criteria
2. Reassess Your Geography
3. Properly Budget Your Time
   

1. Properly Define Your Property Criteria 

This step sounds simple but cannot be overstated. Thoroughly outlining your needs for the new space will save you months on the backend. This is the foundation of your office search.

Remember that in this market, tenants have room to be picky. Your tenancy is at a premium, and landlords are willing to offer more to get you in their space. 

So take the time to do a deep dive into your company’s wants and needs. What qualities do you absolutely need? Which features are not necessarily “must-haves”?

Think of your typical need assessment with factors like:

• Number of employees to accommodate   
• Number of seats 
• Appropriate square footage   
• Optimal geography   
• Necessary and additional amenities   
• Price range   
• Timeframe 
• Willingness to dedicate resources to build-out 
• Options to include parking, signage, etc.  

Then take one step further with your KSDs™. Your Key Site Drivers allow you to consider and weigh objective factors integral to finding the right culture fit. KSDs are customizable pieces of information specific to your needs. You can rank each factor as a method to measure information that isn’t traditionally trackable. To simplify the process, our REoptimizer® software handles the KSDs for you no matter how many properties you’re evaluating. 

By outlining and weighting your must-haves, you can compare the prospective value of each building (beyond just price).  

• Aesthetics of the building 
• How well it fits your corporate image
• Daycare availability
• Restaurants in the area   
• Gym facility
• Prestige of the location
• Closeness to highways/ mass transit accessibility 
• Parking facilities 
• The overall safety of the area

Working with KSDs will enhance the likelihood that your new office is a perfect fit. Real estate is never one size fits all, so ease your search by including personalized factors.
  

2. It May Be Time To Reassess Your Geography

Now is the time to look into whether your current location is your most optimal. Determining your ideal geography is key to finding favorable commercial real estate features and prices.

Know that you can get benefits by:

Moving “Down the Street”

You don’t have to move across the country to benefit from relocating. If your current lease is ending soon, but you want to remain in the area, finding new space may be the key to dramatically reducing costs.

Since the WFH and hybrid work movements have disrupted the way corporate America thinks about space, demand for commercial real estate has dwindled. So the chances are that the market value for Class A office space in your area is far less than what you’re paying.

So, get out there! Remind your landlord and stakeholders that your tenancy is at a premium. There is no reason for your old, high base rent compounded with expensive yearly escalations. You now have a unique opportunity to scoop up premium office space for a fraction of the price. 

Moving “Into the Burbs”

Relocating now will likely end in savings. However, you can further improve your CRE budget by relocating to the suburbs. Companies that conducted suburban relocations have been able to save big in:

• Cost of living
• Office Rent
• Gas Prices
• Sales Tax
• Operating Expenses, etc.

Since demand for office space in cities is generally higher, you can find premium features for more reasonable rates. The power of your real estate dollars goes further. 

Besides the lower prices, suburbs usually benefit from a higher quality of life. You still have access to the same recourses as city life but with more freedom. In addition, suburbs are generally safer, offer more elbow room, and usually facilitate vehicle ownership.

Suburbs will allow you to remain closely connected to your city for more reasonable prices. 

Moving to “Business-Friendly” States

If you’re not in an area conducive to business growth, you can save millions by relocating to a business-friendly state or city. These locations have lower overhead and better regulations, making them the perfect environment for corporate growth.

 Currently, the hottest states for business relocations are:

• Florida
• Texas
• Tennessee

Many massive organizations have already made decisions to move to these states, launching a corporate migration.

Tesla made headlines by moving their headquarters from California to Texas. 

When we say you can save big in real estate costs by going business-friendly, we mean it. Look at the difference in average rent prices of business-friendly compared to the unfriendly. Savvy tenants can take advantage of what seems like a loophole, to find class A office space for literally up to 80 percent less.

Of course, you can save by relocating down the street or into the suburbs, but if you’re open to it- a further move may bring on the most savings.

3. Relocating May Take Some Time

Rome wasn’t built in a day. Whether you think of your commercial real estate as civilization’s second golden age or not is up to you. But the sentiment remains.

Be prepared for your office relocation to take at least nine months. However, in our experience, we recommend starting the property search around 18 months out from the end of your existing lease. And in a recession, you can even start earlier. Take advantage of lower rents and competitive landlords sooner. 

Once you execute the new property’s lease, you should still anticipate the time needed for renovations. Whether the space is first or second-generation, it will most likely need some work before your occupancy. Therefore, allocate about three months (90 days) to the build-out when budgeting your time.

Giving yourself sufficient time will allow for some much-needed flexibility. Know that many of these factors are moveable. Each function of the schedule ties closely in with the others. As a result, the rest of the steps will likely be held up if one has a delay. 

The Key to an Efficient Relocation? Tenant Reps.

Relocation can be quite a demanding endeavor, especially if commercial real estate isn’t your only responsibility. Finding the right CRE can be a time-consuming and expensive hassle. That is- if you do it without help.

Working with a real estate professional will save you critical time and money. A true, unconflicted tenant rep will direct you to the most favorable properties, prices, and terms.

As tenant reps with over three decades of experience at iOptimize Realty®, we have the process of conducting relocations down to a science. We can help you from the initial decision that your current CRE isn’t working to negotiating with your new landlord.

Schedule a meeting with a rep today.