The worst mistake businesses make when looking for space…and a few others.

June 30th, 2010

An example – ABC company is in a lease with 10,000 SF of office/warehouse space and they need more warehouse area. With no expansion alternatives at their existing location they know they will need to move upon lease expiration. Given that they have no real special requirements, should they start looking at A) 30 days out, B) 60 days out, C) 90 days out or D)120 days out? If you guessed C or D you are probably safe.

Many business owners wait until the last minute to stare their search. This compromises their ability to negotiate and hold out for the ideal property. On the other hand, if you start 6 months out, you are probably wasting your time because most landlords will not hold the space for 6 months until they get rent.

A few tips when thinking about begining your search:

Locate a qualified commercial broker…preferably one experienced in the type of commercial real estate you need (i.e. office, industrial, retail, etc.)
Take a good look at your current facility needs and forecast 5 years out.
Be sure you are not able to obtain additional space or give up space at your current location to make staying feasible.
Start your search 90 days out, given you can be fully moved in 2 weeks.
Open up your parameters as much as possible and then narrow down as the results allow. Being too specific in the beginning may cause you to miss out on an opportunity just outside narrow guidelines.

Be patient, ask questions and understand your needs so your broker can better assist you.

If you have any questions about commercial real estate, feel free to call us at:

Centermark Commercial Real Estate/713.461.4750 office

Eric Hughes

EricHughes@CentermarkRealEstate.com

Categories: Building TIPS, Leasing