Many businesses make the mistake of viewing their real estate as a liability. It should be treated as a manageable expense. Pickett Holstlaw Byrne Realty Advisors believes there is a positive correlation between a company’s corporate real estate strategies and increasing shareholder value. Not only can we generate impressive savings to a company's bottom line, the strategies set forth can also boost employee productivity and increase efficiencies.
Most companies are not, and do not, want to be in the commercial real estate business. However, according to a report by Ernst & Young, which surveyed CFOs of more than 100 companies headquartered in the United States and Europe, real estate is typically the second largest cost to a company. With a company’s performance and bottom-line intrinsically related to its real estate decisions it is essential to develop, refine and review commercial real estate strategies.
Many lease issues critical to any occupancy decision include funding of capital, security, electrical capacity and charges, sublet rights, expansion capabilities, image, overtime services, floor configuration, and building services. However, by developing a comprehensive understanding of our client's goals and objectives, and leveraging market knowledge and conditions, the optimal economic transaction can be achieved. Every client has a unique space requirement. This requires the implementation of a methodology that comprehensively addresses and incorporates all of the client's internal objectives and evaluates them within the context of the real estate market. The ultimate goal of any real estate solution is to create an opportunity that strikes the appropriate balance between corporate objectives and real estate market conditions.
Much like a corporate counsel or financial advisor, Pickett Holstlaw Byrne Realty Advisors acts as your exclusive advocate in all matters pertaining to your offices and related real estate issues. While you could represent your company in court or do your company’s taxes, is this really in your firm’s best interest? With office space and other real estate holdings playing an increasingly larger role in every company’s bottom line, it is critical to retain an expert to help analyze your needs and provide the optimum real estate solution. A good real estate professional should:
Understand your overall business objectives and/or investment goals, as well as your short- and long-term real estate needs.
Align your real estate requirements so that they support and enhance your overall bottom line.
Ensure you are provided with the most current and accurate market information, in order to make sound real estate decisions – this includes not only current statistics, but analysis of future trends and awareness of hidden” alternatives and potential issues.
Develop a strategic negotiating platform that ensures your requirements are met, while applying a “win-win” approach to the negotiations whenever possible.
Provide additional value-added services such as project management, financial analysis, research, marketing, and more.
Pickett Holstlaw Byrne Realty Advisors’ methodology is unique in that we gain a thorough understanding of our client's situation, including financial, operational, and qualitative objectives before formally engaging the marketplace. By helping our clients build internal consensus regarding their real estate strategy at an early stage, we are able to maximize leverage and credibility. This will allow them to be better positioned in the market and to take advantage of timely opportunities. Before you can add value to a real estate strategy, you must first quantify it. If you can’t measure it, then you can’t manage it. Quantifying corporate real estate objectives, therefore, allows our clients to understand the various consequences and risks associated with pursuing various real estate strategies.
Throughout the Central Ohio, office market conditions continue to become more favorable for tenants. An increase in office vacancy, coupled with limited under-construction product has contributed to year-to-date vacancy decreases in most submarkets. With stronger market conditions, incentives such as free rent, and attractive tenant improvement allowances, are becoming increasingly scarce, and higher average asking rents are anticipated. Therefore, it is essential to immediately review your current real estate strategies, as the window of opportunity for favorable tenant market conditions is quickly closing. Corporations that congratulate themselves for renewing leases to avoid the cost of relocating should put an ear to the wall to find out if the landlord is celebrating too. Usually, he has more reason to celebrate than his tenant does because he captures most of the value of a stay in-place decision.
No comments:
Post a Comment