While the recent recession taught most companies to do more with less, we now work with many clients who are growing, hiring, and – most relevant to us – expanding and renovating their office space.
Under current market conditions, with limited space, landlords have the upper hand in negotiations. From an operational perspective, many tenants need more space and need it as soon as possible. This operational predicament can lead to loss of leverage, and often time can lend itself to make short sighted decisions than can have undesired effects. It is important to think through all viable options when faced with this scenario.
Here’s how we can help:
- In some circumstances, a restacking of your current footprint can uncover underutilized space. RCR can advise through the process and assist with engaging architects, interior designers, specialty equipment contractors, and more.
- It is important to consider the accounting implications of any decisions. Many Landlords will require lease restructuring when looking to expand. With FASB laws and depreciation of hard construction improvements versus FF&E, it can also become important to analyze the accounting implications of any decision. In conjunction with your CFP, CPA, and Accountants, RCR can assist in advising and providing analysis to make a sound decision.
- Market Analysis is key to understanding your options. How much space is available in your building, are there any subleases available, or other tenants looking to expand or contract? These are all important questions specific to your building. Further, how does your current rent structure compare to the market? Is your current lease well below market? If so, this could have a significant impact on the decision-making process. Perhaps is could make sense to sublease the space, or propose a termination, or maybe it validates the decision to maintain the lease without restructuring the economics or term. All important factors to consider.
- Vendor relationships are important and RCR advises our clients on selecting the best vendors for each job. We do so without any biases or conflicts of interest. With rising construction pricing and long leads times on materials, furniture, and services, it is extremely important to make sure you have the right team in place. Our Tenant Representation only approach will help you meet your goals in the most unbiased way possible.
Don’t put your organization in a potentially precarious situation without ensuring you have done a thorough and proper analysis. RCR advisors will help your team ensure that have made the appropriate decision with all the available information.