You think you might need new office space whether it’s more space, a different location, or just a new look and feel to match the current direction of your company but where do you start? Online searching for yourself? Brokers are expensive or I’ll get a better deal if I negotiate with the Landlord myself, right? Or, maybe we’ll just have everyone work remotely. It’s too expensive to build out new space. Or, it’s too expensive to move. I’ll just stay.
MYTH: I CAN FIND MY OWN SPACE ON THE INTERNET.
Many spaces are posted on listing sites like LoopNet or on the websites of listing advisors, but those tools are far from being comprehensive solutions. First, do you have time to search every site every day to find new listings? Second, many of the best spaces get shown and leased long before they ever make it on the commercial real estate web. If you’re looking on the Internet, you’re missing great options.
MYTH: BROKERS ARE EXPENSIVE.
No matter what happens, you indirectly pay for the commercial real estate broker’s commission. While the landlord is the one physically signing the check, he or she is paying that fee with your rent money. This means that you have a choice. You can pay for your landlord’s broker to negotiate against you, or you can pay the same amount of money, cover the landlord’s broker and cover the cost of your own tenant representative who will zealously represent your interests. Having a tenant rep isn’t expensive — it’s going without one that will cost you real money. Perhaps most valuable, a tenant representative can advise youon the state of the commercial real estate market and help you to negotiate the best deal for the best space for your company.
MYTH: I DON’T NEED AN OFFICE ANYMORE.
You might not need an office anymore. If you’re a one or two person company, coworking spaces and the like can be good options. However, traditional leased office space still makes sense for most users. At scale, it is less expensive. It also allows you to control your space, use it to build and reflect your culture and brand, and lets you customize how you use it. If you aren’t sure, talk to a commercial real estate broker. He or she will help you analyze your options and to make a good choice for your business.
MYTH: WE CAN’T AFFORD NEW SPACE
If your company is looking to be the first tenant in a new building, it could be less expensive than you think. Many new buildings come with extensive tenant improvement allowances. When a developer builds a building, they know that it will eventually need to be finished. Instead of finishing out the spaces, though, they may choose to offer the first tenants extra money to get the space finished out to meet those tenants’ needs. In these cases, you could find that new commercial real estate space is actually less expensive than reconfiguring existing spaces that don’t meet your company’s needs.
MYTH: MOVING IS EXPENSIVE. I SHOULD JUST STAY
Moving is expensive and disruptive, but unsuitable space could be worse. Furthermore, if you need to reconfigure your space, a new landlord might be willing to include much of the cost of your tenant improvements in the new lease while your commercial lease renewal option might not have any TI allowance built in. The best way to figure out what is best is to research the market and what spaces are available to you.
Hopefully this has helped to quash some of the myths you may have about commercial real estate. The best way to analyze and have an understanding of what’s best for your company is to begin the discussion. Give us a call today and we can help you analyze your options.