Need Office Space for Lease or Sale? OfficeFinder can Help find your next Office. Leasing Office Space Buying Office Space Membership Online Toolkit OfficeFinder Advisor

Entries Tagged as 'Office Relocation'

Smart Small Business: Turning Fixed Costs into Variable Costs

No Comments »

What do entrepreneurs, small businesses, start-ups and freelancers all have in common? In addition to overwhelming stress levels, they share a need to remain financially nimble, which enables them to adapt to today's ever-changing marketplace. When evaluating operational costs against projected revenues, companies can avoid financial traps by scrutinizing fixed costs. Personnel, facilities and goods and services are the three key fixed expense areas that should be addressed.

"Cutting back on overhead expenses is a great way for companies to save money and remain financially prudent," explains Steve Strauss, USA Today small business columnist. "Small businesses often get locked into large, fixed expenses unnecessarily. It's essential to stay fluid as work demands ebb and flow. Business owners often see these expenses as unavoidable or costs that can only be reduced in the long term. There are immediate ways to adjust these expenses to keep businesses afloat and profitable in times of crisis, and as a long term strategy."

Personnel: Hiring full-time employees comes with the added expense of healthcare, 401(k) plans, and other benefits on top of their salaries. When project loads are low, these employees may not be working at capacity, but their related expenses don't adjust accordingly. This equals wasted money. A smarter way to maximize your personnel investment is to hire freelancers.

Independent workers make up 30% of the nation's workforce. And, that number is expected to grow. According to a survey conducted by Regus (LSE:RGU.l), global leader in flexible workplace solutions, in September and August of 2009, 59.6% of U.S. companies expect their use of freelance workers to rise in the next two years. Using freelancers turns your fixed human capital costs into a variable expense that corrects against project requirements as they ebb and flow. Additionally, freelancers are often experts at their craft who offer a higher caliber of work. The Freelancers Union is an invaluable organization that helps businesses tap into the top talent in any given field.

Facilities: Office leasing is often a company's biggest fixed expense. Getting locked into a long-term, traditional lease can be corporate suicide for a small business. In fact, nearly half of all office space sits empty or is unutilized. There's also the added burden of furnishing and maintaining that space. So, what if your office space could scale with your needs much like the freelance workforce suggested above?

Several turnkey options exist that allow companies to pay only for what they use while presenting a professional image and providing a functioning workspace for staff. Regus offers a full range of cost-effective business-ready workspace products including fully furnished, fully equipped offices, meeting rooms with on-site business and administrative support services.

When a physical office is unnecessary, virtual offices allow businesses to instantly gain a market presence with a prestigious, high-profile business address. Support services can also include local telephone answering and mail handling services. 

"Paying for unused, unnecessary office space is like throwing bags of money into a bonfire," said Guillermo Rotman, chief executive officer of Regus Americas. "Small businesses fall into the long-term lease trap all too often. Staying nimble by scaling expenses with projected or actual revenues is essential for any size business, but is absolutely crucial for smaller companies operating on much tighter budgets."

Goods & Services: Businesses no longer have to enter into exclusive, long-term contracts with most goods and services vendors. Negotiating flexible agreements upfront allows professionals the ability to revisit the contracts quarterly and shop for competitive pricing elsewhere.

And, gone are the days when overstock is vital. Just-in-time production and creative storage practices help businesses cut down on inventory overhead. Businesses should pay only for what is needed, when it's needed. What's more, many sub-contractors will ship directly to a customer's clients as necessary -- cutting out the middle man and eliminating unnecessary expenditures.

Find Flexible Workspace

Executive Suites , Flexible Workspace , Office Leasing Tips , Office Relocation , Office Rental , Office Space

Now is the Time to Act?

No Comments »

According to a recent article in the North Bay Business Journal, now is the time to act to take advantage of the bottom of the market:

"The title of the recent Sonoma State University economic outlook conference “The Time is Now” couldn't have more meaning than it does with the current office real estate market. We are at the bottom of the market, and now is the time to take advantage of the current opportunities before it’s too late."

I wish it were true, but as far as I can tell we have a ways to go before the actual bottom is reached in the North Bay or anywhere else. Now, that does not mean that now is not a good time to negotiate a great office deal.  Landlords are hungry and hurting and some fabulous lease of purchase deals are available to those willing to dive in. Until the unemploymet rate starts to drop, the bottom is still in the future, probably within a year or maybe even two.

Get help finding a great office deal

Buying Office Space , Commercial Real Estate , Office Building Sales , Office Relocation , Office Space , Office Space Negotiations , Office Vacancy Rate , San Francisco Office Space

Subleasing Office Space Can Be Risky If You Are Not Careful

No Comments »

With all of the available office space available throughout the country And the economy still in the dumpster, many business are looking towards subleasing as a way to save money on their office rent. In almost every case a tenant can save anywhere between 10% and 50% off the current market rents through a sublease. It sounds like a good deal and in many cases it is, but as in all investments the return (savings) is related to risk. Subleasing space is a risky proposition.  One in which it is very important to have a qualified expert assisting you to make sure you avoid costly mistakes or even worse, potentially cause your business to go under.

What are the risks?

First and foremost, what happens if the former tenant sub-landlord goes bankrupt? Most leases have a clause in them cancelling the lease or giving the landlord the right to cancel the lease if the tenant declares bankruptcy. If this happens and you do not have any protections, you will either be out on the street or paying higher rents.

What happens if you are paying rent to the former tenant sub-landlord, but they are not paying the landlord the full amount of the rent due? They are in default of the lease and therefore you are too.  What happens if the landlord decides to give them the boot? Will you be able to stay in the space at the same rate you are currently paying?  There is no guarantee that your sub-landlord will fulfill their obligation to pay the remainder of the rent or even the rent you pay to them to the landlord.

Although rare, hazardous waste can be another issue, especially if there is land involved. If your sub-landlord caused any hazardous waste, you could find yourself liable to clean it up. Cleaning up hazardous waste is not cheap.

There are ways to protect yourself when you are subleasing office space, but each sublease brings on different nuances that will need to be handled uniquely. A good real estate professional, such as the ones we have with OfficeFinder, will be able to mitigate the risks for you through a number of different means. The most important one would be a no-disturbance agreement signed by the Landlord and notarized. Not all landlords will agree to one, so other means of protection will need to be developed.

If you decide to sublease office space, make sure you protect yourself by partnering with a qualified real estate professional. You will be glad you did.

Office Relocation , Office Rental , Office Space , Office Space Negotiations , Sublease Office Space

Bad News from Fed for Office Space Recovery

According to new projections released Tuesday, top Federal Reserve officials expect unemployment to remain elevated for years to come, suggesting that the economic recovery will be too gradual to create rapid improvement in the job market.

The forecast of 17 top Fed officials anticipates that unemployment rate will still be in the 6.8 to 7.5 percent range at the end of 2012. With a 10.2 percent rate in October, it is an improvement, but a slow one to get down to a healthy level of around 5%.  They stated that they "anticipated that about five or six years would be needed for the economy to converge fully to a longer run path."

As we have discussed in previous posts, the office space recovery is linked with employment.  If there are no new jobs or a slow growth in jobs, office space vacancy will remain high. What this message tells us, if it turns out to be accurate, is that the office space recovery will take at least five to six years going hand in hand with employment growth.

So what does this mean to businesses looking for office space for lease? It means that it will be a tenants market for the next five to six years with rates perhaps dropping a little in the short term and remaining stable for at least the next few years.

Businesses can make sure to take advantage of this opportunity by obtaining the services, at no cost, of a qualified tenant representative.

More info

Office Relocation , Office Rental , Office Space , Office Vacancy Rate , Tenant Representation

Loopnet Q4 Poll Results: When will the Market Recover?

No Comments »

Loopnet's recent poll mirrors what most of the commercial real estate pundits are saying that we won't see much improvement in the commercial real estate market until 2011. Commercial real estate almost always lags behind employment numbers.

"More than 1,000 LoopNet members completed our poll on the Q4 commercial real estate market. Sentiment has turned more pessimistic since the Q3 survey, with 46% of respondents expecting a rebound in transactions to wait until 2011 or beyond, compared to 1/3 in our last survey. Still, the glass half full view notes that over half are still expecting a 2010 recovery. Get more detailed results, including expectations for pricing and the major obstacles that are standing in the way of a recovery on our blog."

Also from their blog:
"Nearly 1 in 5 are expecting to wait until 2012 to see a recovery."

More information from a previous post.

 

Commercial Real Estate , Office Relocation , Office Space Negotiations