Property
Issue No. 33 - February/March 2007
Office tenants - TOP 10 leasing mistakes
Real estate management firm Colliers International identified the top 10 mistakes made by office tenants in a recent survey of its office leasing consultants Australia-wide.
The Colliers team deals with hundreds of tenants and millions of square metres annually, so the survey has significance.
Interestingly, Colliers says, the top 10 mistakes reported were consistent regardless of tenant size or location.
1 Commencing the process too late
By failing to plan well in advance, you can find yourself in a poor negotiating position - the shorter the lead time, the fewer the options with which to leverage negotiations. Ideally, aim to have three to four suitable options on your shortlist, well ahead of your lease expiry date.
2 Not having a clear real estate brief
It is imperative that you understand your company's real estate needs, not just today but for the next few years. No doubt, you expect your business to evolve over this period. Ensure that your long-term needs are being considered at the same time as your immediate ones.
3 Focusing entirely on costs
Too often, business accommodation decisions are made based on bottom-line costs. Consider the costs associated with attracting and retaining good staff - property costs are typically a distant number two to HR costs. If you lost 10% of your staff in a move, how much would it cost your business? Does your property profile send the right message to clients?
4 Failing to appoint a project leader
A single point of contact will ensure the right message gets out to the market and save time for all involved. Input from Finance, HR and IT departments, plus the advice of lawyers, architects and project managers, is required. Appoint someone to take control of this process. Ideally, this individual is not only well organised and a good communicator but has authority to sign off on major project stages.
5 Incorrectly ...
