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Where Does Your Firm Rank in The Great Office Transformation?

James Gorman, the Morgan Stanley CEO, “We’ve proven we can operate with no footprint. That tells you an enormous amount about where people need to be physically.” Our business relationship with office space radically changed over the last year.  Here are questions being debated internally by almost every office-based firm: What changes are permanent and […]

The Work From Anywhere Mindset

Many firms are struggling with the culture shift that has occurred within their firm regarding remote work.   There are numerous very well conducted surveys, including this one by PwC, that conclusively state that employees overwhelmingly prefer some remote work as part of their routine.  Even pre-pandemic, CNBC, Hillarys, and others published surveys indicating that a […]

CFO’s Lead the Way to Reduce Office Expense

As more companies shed excess office space, we’re seeing forward-thinking CFO’s leading the charge.  In the latest FL Institute of CFO’s survey with over 100 CFO’s of firms over $50MM responding, 43% expect to reduce office expenses in 2021 and 50% expect office costs to be flat.  That places office expense reductions just behind corporate […]

Autonomous Driving is Coming First to Your Warehouse

Robots are to Warehouses as Zoom is to Office Meetings.  Covid accelerated both the shift to remote work for office work and the shift to robotics for warehouse work.  Robots don’t need social distancing protocols, can’t get sick or spread a virus, and certainly don’t have to home school their kids. If you’re not yet […]

Work is What We Do, Not Where We Go.

Work From Home or Work From Office is not an all or nothing premise.  We can do both and also work from the local coffee shop or coworking facility.  Let’s stop the polarized contention that people either hate working from home or love it.  It doesn’t matter any one individual’s preference.  What matters is that, […]

How Warehouse Users Can Maximize the Cube

You pay for warehouse space by the square foot and use it by the cubic foot. Spalding Sports is the largest producer of basketballs in the world.  They sought our help when they ran out of warehouse space in their Reno west coast distribution center.  At the time, Spalding had 157,000 SQFT of space and […]

Commercial Lease Provisions: Tape on the Floor

We located a building that had four vacant floors of about 25,000 SQFT each and made the landlord the following offer: The landlord would agree to have an entire floor painted and carpeted, and my client would lease just 5,000 SQFT with an option to take additional space at the same rent and a first right of refusal if the landlord found another user for the balance. Further, rather than put up a demising wall

The Gap

Office market demand has fallen by more than half over this time just one year ago, and rates have remained somewhat flat. Look at this chart comparing Office Market Rent to Occupancy: Source: CoStar Group www.costar.com There has developed a significant spread between “bid” and “ask”. Unfortunately for many corporate office tenants, understanding the true […]

Leverage

Are you delaying making decisions on an approaching lease expiration? Many firms are, especially if they have a plan to simply renew in place. This can be a mistake. That decision delay is fine as long as you protect your negotiation leverage. How? Delay the renew/relocate decision, but not the renew/relocate actions. The chart below […]

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How to Reduce Your Office Footprint

“We’ve proven we can operate with no footprint. That tells you an enormous amount about where people need to be physically.” – James Gorman, CEO, Morgan Stanley ——————- So your firm has realized that it can work differently than in the past. What’s the right process to reduce your footprint? Here’s a plan to follow. […]

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Newton’s first law

Newton’s First Law of Inertia:  An object at rest tends to stay at rest. A Landlord’s First Law of Inertia:  A tenant in place is likely to renew. How likely?  It is hard to find precise data although many Real Estate Investment Trusts report that in excess of 80% of their commercial portfolios renew.  With […]

Where Do We Go From Here?

Nearly every office worker worldwide has taken part in a forced remote work exercise. Incredibly and perhaps surprisingly, we’ve passed with flying colors and demonstrated our ability to adapt to a non-office environment. The experiment is not over. We’ve learned some things, but not everything. We’re finding a significant portion of companies are wrestling with […]

Are you paying for imaginary space?

If you go into the grocer and purchase, for example, three pounds of salmon, you can be relatively certain that you now possess three pounds of salmon.  However, if you lease 30,000 SQFT of space in an office building, can you be relatively certain that you possess 30,000 SQFT?  Absolutely not. Here’s why: To start, […]

C19 Workplace Strategy Checklist

There are many hurdles for getting staff back to work.  Here’s our LeasingBetter C19 Workplace Checklist of best practices to help simplify your process.   Feel free to download and/or print it out if you find it useful. Also be sure to keep checking the CDC Employer Information for Office Buildings for the most recent updates.

The Tsunami

It’s only when the tide goes out that you learn who has been swimming naked. – Warren Buffett As I write this, COVID-19 has about 80,800 confirmed cases worldwide and 1,323 in the US. The operative word there is “confirmed” since by reason there will be many thousands that are unconfirmed and undetected. The virus […]

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What’s a Renewal Option Worth?

It is a great time to be a tenant, and here is another example. Because almost all options are written with the assumption that rates will climb forever upwards, we’re seeing some interesting effects as rental rates tumble. Some options are literally not worth the paper they we’re written on. However, declining markets have made some usually unattractive renewal options have new value. Here’s why:

Florida Sales Tax Credits on Commercial Leases

    One of the great embarrassments to the FL Economic Development folks, who try to lure businesses to relocate to sunny Florida, is that we are the only state to apply sales tax to commercial real estate leases.  (Note that some other states have excise or gross receipts tax that may count revenue from […]

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Market Rate Audits for commercial leases

    One of the easiest and most effective ways for a corporation to keep real estate costs low is to regularly perform Market Rate Audits on their leased locations.  Often many companies get caught up in reactionary tasks such as simply handling leases as they come up for expiration, so they never get ahead of the […]

How to Write an RFP for Corporate Real Estate Services

      Your company has multiple leases for office or industrial space. You’re represented by a Big 5 Landlord Rep firm, and it’s not working out so well. You’re under pressure to improve it, along with a hundred other things that need improved. So you plan to create an RFP for RE services. I […]