Entries by Walt Batansky

Playing Russian Roulette with Corporate Real Estate

When choosing professional services, there exists an old adage that the largest providers are the safe bets. “Nobody ever got fired for hiring IBM” was the well known saying implying that a large company offered at least the reasonable perception of reduced risk over smaller firms. In regards to technology consulting, those advantages may have […]

Location, Location, Location

The City of London realized, shortly after WWII that they would need a new airport, now known as Heathrow.   The job of determining the location was entrusted to Alfred Critchley, a successful businessman. Consider the many criteria that must be considered when choosing the location for a major airport: Transportation access, proximity to the […]

Tenant Strategy for the New FASB Lease Accounting (or “How to Make Your CFO Happy”)

It seems like every accounting, real estate, and asset tracking software firm has published an article on the new FASB Lease Accounting Standards.  I’ve noticed that they all tend to talk in generalities about the actual mechanics, and none that I’ve found seem to offer suggestions from a corporate user perspective aside from “Get ready!”. […]

Mergers and acquisition real estate due diligence – or pay your dues

When companies acquire or merge with other competing or complementary firms, real estate is, as a part of the transaction, generally a small overall concern. However, we frequently see major risk being absorbed by the acquiring firm with potential for a very negative surprise down the road.

Here’s the error: Due diligence of the real estate is often relegated to their investment advisory firm and/or an M&A legal team to simply provide a cursory review of the legal terms of leased real estate without much attention to the business terms.

Amazon Prime’s Logistics Strategy

A few months ago, I joined Amazon Prime. That’s a $79/year program that Amazon developed that gives members free 2 day shipping on Amazon-stocked products (which is most of the stuff that they sell). For me, having nearly anything I want conveniently delivered anywhere I want in two days is fantastic. However, the second time I bought from them

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

Corporate Real Estate Best Practices: Key Performance Metrics

Every business has a learning curve as it grows, and the collective wisdom learned along the way becomes an invaluable knowledge base. This is especially true in regard to your facility strategy. By analyzing what was done right and what could be improved in each new location or lease renewal process, you can develop rules to achieve the greatest return and avoid pitfalls.

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:

A better way to manage commercial construction

If you were around and fortunate enough to have a cell phone 30 years ago, you most likely had a Motorola “brick”.  It made calls.  It did not have a camera, email, mapping or navigation function, calculator, clock, or play music.  It could act as a paperweight, mini-dumbell, or a defensive weapon in a pinch. Now, […]

Operating Expense Pass Throughs – Protecting Yourself

I’m not crazy about condominiums. Here’s why: Other people (the condo association – which is often controlled by a very small group of individuals) get to vote on how to spend your money. Some of those choices may not add value for you or to your property. Operating expenses on leased commercial property work the same way. The management company, which is the property ownership