In most cases, for a company, the cost of a lease is second only to the cost of salaries.
While salaries are important to the individuals concerned, the business paying that salary also needs to be considered. It’s important that the business not only offers a comfortable work environment, but also one that encourages top performance and enables employees to maximise their potential, which in turn allows the lease to be paid.
How does a company provide for such an environment?
Simple. Make sure your workspace is working for you, and to achieve this, you need to start at the beginning – with an effective lease transaction.
Step 1: Understand your needs
Analysis is critical. It defines why a business needs to move, or if it should be relocating at all. With the right insight, the most suitable commercial or industrial node can be identified together with existing buildings or new developments that meet the business requirements in terms of productivity and budget.
Step 2: Plan for productivity
Understanding your space utilisation requirements is essential. Effective space planning can reduce your monthly rental cost relative to your current cost, and also greatly enhance business performance and productivity. Think of the computer game Tetris, for example. In the office environments of today, proverbial Tetris blocks come in the form of informal meeting booths, collaborative space, multi-use areas, and efficiently designed desking and storage solutions. These elements can be planned in such a way as to greatly reduce the footprint of office space, while catering for the ever evolving needs of employees, aiding both staff retention and productivity.
By correctly manipulating shapes in the most effective way, you achieve alignment and automatically reduce the amount of space required.
Step 3: Get into the nitty gritty
A variety of elements must be assessed to ensure they impact positively on your lease requirements. A good understanding of and the ability to value engineer these elements contributes real savings for the company. Some of these elements include:
- net rental
- operating costs
- parking (basement, shaded, covered, open)
- tenant installation allowance
- length of lease.
Step 4: Build a relationship with your landlord
A lease agreement is a long term relationship and so it is important to enable a smooth negotiating process between landlord and client from the outset. Recognising what both parties require to reach agreement will form the groundwork for a synergistic relationship moving forward.
Step 5: Be legal wise
Understanding the terms in the lease agreement is the last critical, and essential, cog in the process. Agreeing (or not) to various pertinent points allows both parties to reach a fair deal.
And there you have it – consulting with a reputable all-encompassing lease advisory team allows business requirements to be understood, promotes more efficient space planning to boost your bottom line, aligns your lease with best property practices, and provides the right productive environment for employees to earn their salaries!