Plan no matter what the shape
the property context that means ignoring macro economic things beyond
your control and doing everything practical to squeeze value out of the
real estate that serves your business.
How big should your office be?
"Bigger" would be my tongue-in-cheek response, but size isn't everything, apparently, as a recent report from the British Council of Offices indicates:
Typical Question: We're renewing our lease at the moment - should
I get the broker that did the original deal to come back and advise us?
Most importantly, in today's tough market, a sound strategic plan is never static; it is driven by the business plan.
Strategies for today's market:
To remain competitive in the current tight economy, you must maximize your asset utilization. In other words, make the most of what you have. Make intentional decisions about your property investments (whether owned or leased) and how you use your existing assets. During a soft market, such as we are experiencing in most parts of South Africa, it is a good time for companies to look ahead at both short-term and long-term objectives.
Too much space?
Let's say you currently operate out of three different premises, but
after closer evaluation you find you could operate just as well with only
two - if you are operationally indifferent as to which properties to keep,
then sell or sublease the space that will generate the highest return.
Give the market what it wants - as long as it doesn't negatively affect
your own business objectives.
Need more space?
If your company needs additional or more functional space, there are numerous alternatives to the lease or purchase of additional space.
While the phrase tenants market is unlikely to be uttered by a landlord, there are currently a number of ways to secure fair rentals and decent tenant installation allowances. Negotiating an appropriate deal for more space now could very well save you money in the long run.
It all boils down to having a portfolio view, a thought-out perspective
on how best to leverage property as a business asset. The temptation may
be to pounce on localized opportunities that present themselves in the
current market, but that could unravel in years to come. I believe the
best route is to develop and implement a long term property plan that
crystallizes the companies approach to lease Vs buy, longer
Vs shorter commitments and how property can best be used as a positive
lever in the pursuit of profit.
So, use the current tough times to create or firm up your overall framework
- it'll help you make intentional - not reactive - decisions regarding
your property matters.
Article from: www.eprop.co.za