There are a variety of difficulties that confront business owners and managers when navigating the complexity of the commercial real estate marketplace looking for new offices.
The result for many is frustration and confusion. This feeds the fear of getting the decision wrong with respect to their office accommodation needs. They end up asking themselves, “What if I end up paying too much for my rent, the business strikes a downturn and then I am locked into rental costs that are too high for the income that my business is generating?”
To confront this fear, it’s important to acknowledge the five common mistakes made by prospective tenants when choosing new offices, and they are;-
- Delegating the responsibility: The reason for this mistake is two-fold. Firstly, due to the complexity of the marketplace, Secondly, there’s the fear of getting it wrong. The decision to move office is a strategic one and needs to be treated accordingly
- Relying too heavily on a single adviser and assuming all design and specialist consultants are the same: The prospect of navigating the complexity that is the commercial property industry can appear very difficult, and it is further compounded by the fact that many of the players in the space would appear to be seriously conflicted. This doesn’t negate the value of their advice, but recognising the existence of this conflict provides valuable context.
- Having too much of a focus on cost: All too often, cost becomes the primary parameter upon which decisions are made, thereby neglecting the opportunities that might come through creating additional value (through operational efficiency and productivity) or income (through enhanced brand and reputation) by making a carefully judged and weighted investment on behalf of the business.
- Focusing on previous failures: Having taken responsibility for the process previously and then feeling (or even worse – knowing) that the outcomes envisaged weren’t delivered can engender a ‘once bitten, twice shy’ attitude.
- Not allowing enough time for the process: It will take some time (somewhere between 9 and 18 months) for your needs to be matched to a shortlist of appropriate office space alternatives