Experts
offer business owners tips on finding the right homes for their
businesses.
By Andrea Corey
Finding the right property for a company is a lot like finding
the right home for a family. The right property needs to be
big enough, be a good investment and keep the people who spend
time inside it happy for years to come. But finding space for
a company throws a whole set of questions into the mix: What
are the company’s long-term needs for growth? Does the space
project the right image? Is the location closer to clients,
the work force or management?
Local experts say finding the right property is really a matter
of looking toward the future. Know the company’s goals. Think
about how many employees the company might have in five, seven
or 10 years. A business plan should guide any decisions on leasing
space.
Mark Palmer, senior vice president of CB Richard Ellis-St. Louis,
says he looks at a company’s culture, senior management’s plans
for the company in the future, how the new property will fit
into the company as a whole, and the company’s esprit de corps
when trying to assess needs for space. “You’ve got to know the
people. You’ve got to get in their heads,” he says.
Technology can often affect the size of space a company needs.
Mark Schnuck, president of DESCO Commercial, says many companies
have employees who travel often or work at home part of the
time. Those companies often require less space, because their
employees share desks at the office.
When choosing a location for new space, Schnuck says companies
should consider whether they want to be close to the homes of
senior management, their client base or the workforce.
Both real estate sources also say it’s important to start early,
although how early depends on how well you understand your company’s
needs and what kind of property you want. Palmer says company
management should put finding new space on its agenda two years
before the company’s lease expires. He estimated that finding
new space could take 12 to 16 months; by the time a company
has six months remaining on a lease, management should know
whether the company will stay in its current space or move.
Schnuck estimates the process will take 9 months for some companies.
“You can do it in a much tighter timeframe if you know what
you need and are ready to make the move.”
Mark
Schnuck, president of
DESCO Commercial |
Finding the right space is also a matter of finding a good broker
who can find it for you. Mark Crowley is vice president of membership
and information services at the Washington, D.C.-based non-profit
Society of Industrial and Office Realtors (SIOR), a professional
affiliate of the National Association of Realtors.
Crowley says one way to determine whether a particular broker
is a good choice for your company is to look at professional
designations. For example, to earn the SIOR designation, brokers
must satisfy organizational requirements in education, experience
and production. There are 42 brokers in St. Louis with the SIOR
designation. Other professional designations to look for include
CCIM, or Certified Commercial Investment Member, for those interested
in investing in property, and CPM, Certified Property Manager,
for building management.
But Crowley says it’s also a good idea to ask around to find
a good broker. Reputations and word-of-mouth referrals play
a big role in the real estate industry, he says.
Two industry trends could also help companies looking for space.
First, Crowley says more and more brokers are specializing in
specific industries, not just in the office, retail or industrial
property. For example, a broker might close several deals in
the printing industry, and then decide to specialize and serve
that kind of client exclusively. Crowley says specialization
can prove a great benefit to clients in industries that can
be harder to serve.
Another trend that could help companies is the increasing amount
of real estate information offered online. Companies like LoopNet
(www.loopnet.com), CoStar Group (www.costargroup.com), and Property
First (www.propertyfirst.com), offer information on property
companies could use to comparison shop, or even find property
to tour. In addition, all of the larger real estate firms have
sites that usually list space up for lease or sub-lease. In
St. Louis, the St. Louis Realtors Association offers a detailed
database of available properties, recent sale and rental information
and other references to knowledgeable sources. That site is
located at http://gstlcie.rapmls.com. The RCGA offers its own
computerized inventory of property, including commercial and
industrial buildings, greenspace and office space at www.econdev.stlrcga.org.
That database is compiled from information from the Greater
St. Louis Economic Development Network and area real estate
brokers.
All of this online information allows consumers to become more
real estate savvy, Crowley says. In the end, that could lead
to getting a better deal.
Palmer says once a company finds a broker, it’s important to
cultivate a relationship and give the broker time to understand
your needs. “Be very direct. Be very open. Trust your broker,”
he says.
He also warns that it’s also important to not get too attached
to one piece of property. “Don’t fall in love with one space,
because you might not get it,” he says. “Be prepared to not
get your first choice.”
Andrea Corey is a St. Louis-based freelance writer and president
of Buzz Media Inc.
