TheSquareFoot - Leasing Space For Your Business
18
TheSquareFoot: Commercial Leasing Workshop Caroline Collective October 18 th 2011 http://www.thesquarefoot.com/houston/
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Have you been looking for a space solution for your business? Do you feel overwhelmed with the commercial real estate system? Our friends at The Square Foot dispel much of the smoke and mirrors when it comes to commercial real estate and they’ll be here next Tuesday to fill us in! Here’s a little bit of what they’ll cover: Different varieties of spaces available for lease Commercial Real Estate as an old industry (and the skeletons we inherit) The benefits of a tenant broker Crucial factors to consider when searching for space Differences between listing agents and tenant brokers What is coworking and how does it affect this ecosystem? We certainly have our biases for coworking (Full disclosure: we’re a coworking space), but this sessions should be useful to all business owners and freelancers looking for a home base.
Transcript of TheSquareFoot - Leasing Space For Your Business
TheSquareFoot:Commercial Leasing
WorkshopCaroline CollectiveOctober 18th 2011
http://www.thesquarefoot.com/houston/
I Am Thinking About Leasing Space
What type of commercial space is the best fit for my business?
What should I expect from the process? Who are the players? What should I avoid at all costs? How long of a lease should I sign?
Types of Commercial Space: Office-traditional, executive suites, shared
space, sublease, co-working – GO CAROLINE COLLECTIVE!, Virtual
Retail-free standing, strip center, community center, regional mall, power center.
Industrial/Warehouse-heated & unheated, refrigerated, controlled humidity
Traditional Office
Fill up most of the buildings you see around you everyday
Majority of leases are for 3-5 years Typically 1000 sf+ Multiple employees Medical space has slightly different leases
and build outs due to the nature of the business.
Executive Suites Smaller floor plans with more flexible lease
terms. Essentially an independent lessee, breaking
space up and having their own agreements with tenants.
Common areas: conference rooms & kitchenettes.
Often pre furnished Receptionist might be on hand acting as an
office administrator.
Virtual Office Solutions Remote Receptionist-call forwarding,
messaging services Reputable professional address without the
costAccept, send, forward mail without using a PO
BoxAlleviates privacy and security of a small
businessAbility to expand into new markets with a
provider with multiple locations On demand (hourly, daily, weekly) use of
conference rooms Davinci - $60-$250/month
Shared Space Rent unused space from a tenant with a
direct lease. Rent a single desk, office, or group of
offices. Common reception, conference, copy, fax,
pantry. Lawyers, Accountants, commonly offer
shared spaces. Matching Services to put those in need with
those offering.
Sublease Existing tenant leases out their space to
another tenant with the landlord’s consent.
Original tenant MAINTAINS RESPONSIBILITY OF ORIGINAL LEASE AGREEMENT
Savings can range between 15%-40% under typical vacant office market rates.
Flexibility / Furniture
Coworking Social gathering of a group of people who are
working independently, but who share values.
Conducive for those interested in the synergies that can happen from working with talented people in the same space.
Great solution to the problem of isolation that many freelancers experience while working at home or in a confined office arrangement.
Retail Space LOCATION IS EVERYTHING
VisibilityStreet access
Free Standing Strip Center-common parking, no major department or grocery
store Community Center-day to day needs, anchored by grocery
store with support stores for personal services Regional Mall-serve 5-15 mile radius, current fashion goods
spanning the general, apparel, home furnishings, & other merchandise categories
Power Center-few tenants most of which are anchor (big brand) tenants. Best Buy, Linens N Things, Home Depot, Old Navy
Industrial / Warehouse Lot of Logistics
Transporting inventory and all the associated costs and issues that can arise
• Loading DocksTruck Wells, recessed, platforms, Correct height docks
• Ceiling Height24 feet or enough room for stacking 3 forklift
pallets• Office, Storage, Parking-Trucking Volume• Refrigeration, Climate Control
The Process Commercial real estate is a massive
industry with lots of jargonBuying LandSelling LandDeveloping BuildingsLeasing BuildingsSelling Buildings
CRE is an “old school” business which has yet to significantly adopt technology
Industry benefits from protecting information and uneducated consumers.
Rental Rate $ per square foot X square feet = monthly
rate Annual rental rate
Price per square foot X 12 (months)Ex: $1.00/sf = $12.00/sf annuallyEx2: $2.00/sf = $24.00/sf annually
Houston averagesOffice = $25 (for Class A)Retail = $18Warehouse = $5
The Players
Tenant = YOU! Landlord
Individual property ownerLarge corporation
Landlord Broker = Leasing Agent FOR THE LANDLORD
Tenant Broker = BROKER REPRESENTING YOU
Tenant Brokers
1. Does all of the heavy lifting for you2. Is a market expert3. Is a lease negotiating expert4. IS PAID BY THE LANDLORD Would you walk into a courtroom without a
lawyer?
Things to avoid
ProcrastinationWe recommend initiating space search 6 months
in advance of moving Calling signs on a building
Give up leverage RELYING ON ONLINE LISTINGS
Other Online Tools
TheSquareFoot Leasopedia – http://www.leasopedia.com
OpenOfficeSpace – http://www.openofficespace.com
RateBlend – http://www.rateblend.com
Questions?
