ASSEMBLE A TEAM, A TIMELINE, AND A BUDGET
The time required for a successful move depends on the size of the space required and the complexity of the new space. For an office user with 10,000 or more square feet, it is best to begin the process within 18 months prior to the expiration of the current lease. It is critical to begin the process early enough to maintain leverage in lease negotiations and to be exposed to as many alternatives as possible. Last week we discussed the importance of reviewing your existing lease prior to doing anything else. Once you have done that it’s time to assemble the team, the timeline and the budget.
- Choose a Team Leader and Make them Aware of Management’s Goals. Being the point person on an internal office move can require a substantial time commitment. The team leader should be made aware of this and may need to delegate some of their normal duties to someone else during the search process. In addition, it is imperative that the team leader receives clearly defined goals and instructions from all decision-makers involved. Often the best choice for a team leader is the CFO, general counsel, head of facilities or an office manager.
- Assemble an External Team. The first step for the team leader should be to interview and hire a real estate broker. The broker can then assist in hiring other professionals such as architects, engineers, and construction managers.
- Clearly Define the Role and Responsibility of Each Member of the Team. The roles of each team member should be clearly defined, and they should be held accountable.
- Create a Project Schedule. The team leader, together with assistance from the broker, should create and maintain a project schedule that keeps everyone on track. The project schedule should outline each team member’s duties and should include key deadlines for completion and budgets. Staying on schedule will prevent you from moving too late and having to pay holdover rent or from moving too early and having to pay rent on two locations.
- Establish a Preliminary Project Budget. The budget should address costs for construction, if any, professional fees, furniture, equipment, moving costs and any other costs not covered by landlord concessions.
Next week we will discuss the process used to determine how much space is needed.
At Mobiliti CRE we focus 100% on representing tenants with office relocations, expansions, contractions, and subleases. We also assist businesses who are looking to purchase office, medical office, industrial, and retail space. Reach out to us for assistance at 813-300-2227 or via email at firstname.lastname@example.org Here at Mobiliti CRE we assist both small and large investors as well as owner-occupiers with commercial real estate purchases.
More Tenant Related Information
- Tampa Bay Commercial Office Market Snapshot
- How to Maximize Tenant Renewals
- Tips for Renegotiating Rent Due to COVID-19
- 5 Things to Ignore on a Virtual Tour
- Cost Saving Strategies to Reduce Rental Expenses