When it's time to select a new site for your business, everyone remembers the old adage "LOCATION, LOCATION, LOCATION" as being the three things to look for. The problem is, not everyone knows what makes a good location, or which good location is right for them. This is were the expertise of an experienced commercial real estate professional is needed.
The staff of Real Estate Dynamics, Inc. has had many years of experience in selecting locations for a wide range of businesses. We know that different types of businesses needed different types of locations. What makes a great location for one, may be a terrible location for another! If you don't have the knowledge and experience to make sound judgements in matters of this nature, you need the counsel of someone that does.
SELECTING A NEW SITE TO INCREASE BUSINESS.
A local service business had been in operation for close to ten years. While successful, the owner felt that sales just had not increased the way that he felt they should. Thus, he thought that a new location might be the answer. Just where was the question!
We reviewed how he served his customers, and discussed how he decided on his present shopping center location. As it turned out, his present location was selected more by chance than as a result of any sort of planned strategy. It was observed that many of his customers were women, with small, preschool children in tow. They either took their children in the store, or left them in the car while they ran in the store for a few minutes.
After a careful analysis of the situation, we recommended that a more visible and convenient location be sought. The sign on the current location was too far back from the street for visibility to anyone other than customers of the shopping center. We also recommended that the new location have the capability to add a drive-up window for customer convenience. We were successful in finding a location in a prominently located, freestanding building that had a drive isle adjacent the outer wall of the space. This new location offered much improved sign visibility and the opportunity to put in a drive-up window.
To make a long story short, we were successful in negotiating a favorable lease, and our client moved in and added the drive-up window. Within the next year, his business doubled!
A MAJOR COMPANY RELOCATES ITS REGIONAL OFFICE.
Relocating your business can be a complex process, particularly if you are relocating it to another city! How do you find the right location, is it offered at a fair rental rate or price, what will the company's employees think when they hear the rumor that the company is relocating, how can we maintain confidentiality? All these, and more, are questions that run through the mind of every chief executive which must make the decision about moving to a new city. Having Real Estate Dynamics, Inc. assist you in this process can make the process much easier and more efficient.
The Chief Executive of the Regional Office for a major publicly traded corporation requested a meeting to discuss real estate. We were surprised to learn that the company was considering the relocation of its Regional Office to a larger city. However, there were a variety of considerations, and decisions that had to be made before allowing the situation to become publicly known. This was a particularly sensitive issue since the company had been founded in the same city where this particular Regional Office was located. We were advised that the situation was so confidential that not even the Regional Office's staff real estate personnel could not be made aware of it. Thus, Real Estate Dynamics, Inc. was asked to independently search the new city for suitable new office locations, and initiate lease negotiations.
Our client needed approximately 30,000 sq. ft. of Class A office space, with options to expand. Thus, we narrowed down the list of possibilities to those buildings which could accommodate a tenant of this size. We then compared the locations, with respect to their proximity to a variety of housing price ranges, and their respective "value" within the group of available alternatives.
The building selected as the "first choice" was a building under construction, with relatively little pre-leasing completed. This put us in a position to negotiate for both rent concessions and options to expand, since several floors of the building had not yet been leased. The basic structure of the lease was negotiated without the building owner learning who the tenant would be. Their initial knowledge of the tenant was limited to the fact that it would be a publicly traded company with a very strong financial statement. By the time the tenant's name was disclosed to the building owners, we were well on our way to completing the negotiations, and the client had developed a suitable strategy for relocating its employees and making the necessary public announcements.
Most of our client's Regional Staff Members only became aware of the pending relocation after the lease was completed. Once the client had made the decision to relocate, maintaining confidentiality and holding the pre-move publicity to a minimum helped reduce much of the local political pressure, which was certain to come from the city being left behind. Since relocating was a necessity for the client, having the ability to simultaneously announce the decision to move, and the new location, reduced much of the public pressure that is inevitable in such a move.