How do you arrive at the best decision for you?
Chris Deering, managing director
Rosemary de Lambert, general manager
There’s always room for panic. This rings true when it first occurs to you that a lease expiry is looming just around the corner. Has it really been 7 years already, you might ask. “Nearly”, replies the letter from your landlord or agent. Reading further into the letter will tell you if a new lease is in the offing, whether you’re going to have to find a new home for your business or whether the rent will be dramatically increased (no, it never decreases and yes, dramatic increases usually mean you’ll be moving on). There are a number of things to think about though and here are just 4 to get you thinking about heading for greener pastures or staying put.
How has your current space served you and your business?
Here’s a hint. If this question causes an almost involuntary pursing of the lips and a shrug of the shoulders, followed by an, “aw yeah?” or “it’s fine”, think again. When something is right, when the layout, design, branding and aesthetics have come together to help the business’s team “punch above it’s weight” in terms of efficiency and productivity, you’re literally in a great space. If you have reservations. If there are things you have long since learned to put up with, there is a very real opportunity to make some changes for the better.
The problem is that commercial office space leases are usually reasonably lengthy affairs. Yes, some range in the vicinity of 3-5 years but 7-10 may be closer to what we would call typical – particularly in the 800-3000m2 CBD or business park scenarios we’ve dealt with over the past 27+ years. During the duration of that lease, you can get used to a lot of things – even integrate them into a new way of working. That’s not always for the best. It’s not surprising when wasted space, slightly smaller-than-needed kitchens and lack of storage space become “just one of those things”. In reality, these are things that should be considered on a regular basis however, many tenants simply get over it and get on with it. Often, and in varying degrees, to their detriment.
What does your market and/or your business look like in the near future?
There are of course many examples of businesses flourishing in harmonious surrounds: all is well with the commercial office fit out and how it envelopes and enhances productivity. This is music to our ears and to the ears of any skilled interior design professional. But every silver cloud has a dark lining (not necessarily true by the way). The danger here is that while enjoying this workplace nirvana, business can tend to lose sight of what’s next, what lies beyond the horizon. Not necessarily in terms of trends in the marketplace, competitor activity and the like. No, more along the lines of how any and all of those fluctuations and possibilities might alter the requirements of their physical workplace.
An upswing in market position, supply and demand or unforeseen opportunities may point to growth in terms of both business activity, the number of staff, pieces of equipment or storage. Of course, these developments don’t always spring out at you from around the next corner without warning. It is worth reminding yourself however, that 10, 7 or even just 5 years is a very long time in commercial enterprise and organisations alike.
Setting aside commercial soothsayers and futurists, it may be quite difficult, if not impossible to predict what will happen in your company’s field of endeavour half a decade or more down the track. But what a forward thinking commercial interior designer can do is make provision for flexibility and adaptability within your current workplace.
Does your current space or even your current landlord, offer the scope and flexibility to adapt to changing demands? Could you add 10 more operators to your call centre? Could co-working or meeting areas be created if needed? What happens if right-sizing three years from now meant decreasing team numbers but demanded more hot desks?
All things to consider.
Are we happy with the adjusted terms being offered?
It’s wonderful when you happen to see eye to eye with the landlord and have maybe even built a long-lasting, mutually-beneficial relationship and understanding but…
If not, what can/do we do?
This may not be the end of the line for your business and your current location. You may want it to be, you might be very comfortable with moving to those greener pastures mentioned earlier but it doesn’t have to be a foregone conclusion.And here’s more potentially good news. There really is such a thing as a “Stay Go” analysis or feasibility study which is part of a broader service – tenant advisory – that clarifies and shapes rational thinking so an informed, savvy decision can be made.In short, our tenant advisory services ensure that you are first in, the best address, for your business and its core functions.
The advantage of independent tenant advisory services
That’s only part of the tenant advisory picture. This service involves working with you to fully understand your needs now and into the future as well as consulting with owners, landlords and or agents to get what you need. Our independent service ensures that our clients have the option of renegotiated terms or solid, documented evidence to suggest that the right location for them is waiting for them elsewhere. That’s how you’ll know whether to stay or go – so don’t panic.