Can the tight commercial real estate market we are experiencing in Tampa negatively impact your business?
It can if you are not factoring in additional time to identify the right space to relocate your office. If you are reading this in 2018, you most likely signed your office lease in 2012 or 2013 when the market was still bandaging itself from the hit in 2008. In 2012, there were several options to choose from and Landlords were providing incentives like the chocolate samples are the Godiva store.
And now the tables have turned.
Free candy, let alone free rent has been taken off the table as more Landlord’s leaning back, crossing their arms as they review multiple proposals from Tenants for office suites choosing which company has longevity and profitability as a Tenant. Competition for high demand locations and size suites have turned into a profitable game for Landlords but not so much for Tenants who are competing for office space.
How do you make sure the tight market does not affect your business? Here are three suggestions.
- Lengthen the timeline for your search.
Allowing for more time in your search will provide leverage when negotiating, giving flexibility to walk away from a space when the terms are not ideal. If however, you are on a time crunch with your lease deadline lingering, you may be forced to agree to terms that increase your financial risk, liability and impact your business long term.
If you are in need of under 5,000 sq. ft., a 6-month search window or more is ideal. For over 5,000 sq. ft., 6 to 12 months is a preferable timeframe. With dynamic markets, contractors are busier and timelines or permits are extended.
- Keep your options open.
Avoid only focusing on one office space when the smarter, safer route to take is pursuing your top two options. Here are three main reasons why only focusing on one office space when identifying the right location to relocate your office can end up in a sticky mess:
- If the deal falls through, you are back to square one and have lost all the time put into one potential lease.
- You can’t compare another lease option and leverage it to show what a competing Landlord is willing to do.
- Having one option increases the chance you will give in to what the Landlord is asking because there is no plan B, and you are operating out of a fear of loss.
3. There is no “perfect space.”
Limited supply means limited possibility. Is it likely that an office space you tour has the exact floor plan you are desire? Most likely, no, it will not be a direct match for what you had envisioned. But preparing yourself with an open mindset to the office layout or space modifications will go a long way to getting you want you wan