Thinking of a New Lease? The Time To Start May Be Sooner Than You Think
How long will it take to plan and execute an office renegotiation or relocation?
The question is being asked more and more today as businesses are taking a hard look at their workplace needs and evaluating what is best for their organization in the future.
While companies seeking office space strive to take advantage of tenant-favorable market conditions, many are unaware of when to start the relocation/renewal process.
Organizations are engaging tenant representation firms like CBIZ Gibraltar to support a Needs Assessment and evaluation of their current lease to understand opportunities and risks before engaging the marketplace. This assessment and strategic planning also helps determine the type and amount of space they need — which is the first phase in the office lease timeline.
A thoughtful timeline enables tenants to consider real estate requirements, negotiate with landlords and secure a space that aligns with long-term needs with design, construction, and workplace solutions. As a general guideline, we always recommend a timeline that typically spans 18- to 24-months to plan and execute an office lease transaction.
Month 1 — 2: Needs Assessment, Space Requirements & Strategic Planning
We identify critical project factors such as budget, geographic parameters, current and future employee headcount, and more based on each individual client’s needs. It’s important to consider not just how many employees will be coming in and how many executives need private offices, but also what types of collaboration, meeting and training spaces will meet business and employee needs. With strategic space programming metrics implemented, the appropriate amount of space can be evaluated for current and future needs.
Month 2 — 3: Market Research
Utilizing distinct market tools and resources, alternatives in the market can be identified and qualified to determine relocation options. Detailed information is gathered (such as square footage, building amenities, operating expenses, and rental rate) for each option based on the client’s needs. Depending on flexibility in the timeline, clients can take advantage of market conditions to identify and evaluate many options that support strategic decision making. The market research is then summarized in an extensive Market Survey Report.
Month 3 — 4: Site Tours & Selection
Once the market research is completed, site tours of all potential options are coordinated to define a preferred short-list that best meets needs. This helps clients understand market conditions and can create negotiation leverage in the marketplace as well as with the client’s existing landlord.
Month 4 — 7: RFPs, Lease Negotiation & Letter of Intent
CBIZ Gibraltar initiates a Lease Negotiation process, ensuring that maximum leverage is created for the benefit of the client without any conflicts of interest.
CBIZ Gibraltar will clarify the client’s objectives as they relate to key negotiation goals such as rates, concessions, improvements, renewals, expansion, termination and contractions for each location, then prepare and distribute RFPs to finalist properties identified in the site tours. Proposals will be collected and evaluated based on all building components such as rental rates, operating costs, escalations, concessions, buildout allowances, floor plate efficiency, infrastructure, parking and amenities. The alternatives are then narrowed to a short list of buildings, including the client’s existing location (if applicable), to initiate formal negotiations. During the negotiation process, CBIZ Gibraltar uses analytical tools to conduct comprehensive financial analyses to evaluate the financial impact of each location. Finally, CBIZ Gibraltar will conduct a comprehensive review of the lease, in conjunction with the client’s legal team, to ensure every aspect of the negotiated terms are included in the final documentation.
Month 7 — 18+: Workplace Solutions: Design, Construction & Move
Our Workplace Solutions provides tenants with the peace of mind that they will receive the best value in facility design, construction, and on-time and on-budget project delivery. CBIZ Gibraltar works in conjunction with the transition team to establish timelines, project budgets, orchestrate a competitive contractor bidding process, and follow through on the physical move or renovation. The result is a completed project, implemented on time, within budget and with minimal disruption to operations.
Talent, performance, and culture live at the crossroads of workplace strategy — and today, a more dynamic workspace is viewed as a commitment to a competitive edge rather than a cost. The decision of when to start the process for the next commercial lease is crucial.
Contact CBIZ Gibraltar today. We want to be viewed as an extension of your organization. Someone you can trust and rely on for important data and information that will allow you to make critical operational decisions.