Tenants Should Evaluate Space Needs and the Market…. “Early and Often”
I have never been certified to scuba dive, as it is just not something I have had a real desire to do. Scuba diving exposes you to ear pressure effects not encountered on land. If you cannot equalize your ears while you descend, your dive is over. A scuba instructor will teach you as you make a slow, controlled feet first descent, start equalizing as soon as you feel your head go beneath the surface of the water. Then equalize every 3 feet or so until you reach the bottom. The saying is you have to do this “early and often”.
What does this have to do with Corporate Real Estate?
Leasing office space can be a complex and time intensive process. One of the most common mistakes I see office tenants make is to begin the evaluation of their space requirements and market options to close to the date of their lease expiration.
Whether you decide to renew your lease or relocate it is important to allow sufficient time to ascertain your current situation, review your options, assess the marketplace context and negotiate with prospective landlords to ensure you optimize the end result.
In today’s volatile economic conditions it is also important to evaluate your real estate needs and the marketplace often rather than assume the long-term nature of real estate lease commitments limit your ability to control your occupancy costs. As it has been so apparent over the last 3-5 years, the economy changes, your business changes and marketplace fundamentals can rapidly shift.
The impact of organizations corporate real estate on its bottom-line is not merely just a function of the “existing market conditions” or the timing in which the real estate decision is selected. The dynamics of an unbalanced market presents opportunities so long as there is a proactive and continuing focus on connecting the dots.
When it comes to your office space, just like scuba diving it is in your best interest to equalize early and often.