The RENT blog gives you the resources and tools you need to make the best decisions regarding your real estate needs. We cover a broad range of subjects regarding office space, tenant needs and what to look for when investing in property.
Real estate is usually the second or third largest expense item for companies. Logically, then, many businesses focus on economics in a site selection process. On occasion, however, a business will focus exclusively on the rent at the expense of other important variables. There are other quantitative factors which also impact a business’ real estate costs, as well as qualitative factors worth serious consideration.
As I discuss in my article on financial analysis, a commercial office lease is a complex financial structure, and there are many factors to consider in determining its true costs to the tenant. In addition to the base rent, tenants should consider the following variables in their site selection:
There are also important qualitative factors to consider in a site selection. In addition to the base rent, tenants should consider the following variables in their site selection:
Businesses should retain a tenant representation commercial real estate broker to help with their site selection. A tenant representation broker will calculate the true costs of each alternative (the true cost DOES NOT equal rent) and will ensure that important qualitative factors are also considered.
For more on the benefits of tenant representation, click here. For more information about planning an office relocation, click here or contact Troy Golden at firstname.lastname@example.org or (630) 805-2463.
Stay informed with all the information you need to know when choosing, or moving your company to a new location.