In This Issue
OFFICE SPACE NEEDS ASSESSMENT
THIS WEEKS RESOURCE INTERESTING BUSINESS BRIEF FREQUENTLY ASKED QUESTIONS ARCHIVED NEWSLETTERS
Would you like your company to be profiled in my newsletter which currently has an audience of over 3,000 professionals and is continually growing?
In addition to being profiled, your company name, address, phone number and website will become a part of my "Million Dollar Rolodex" of my most recommended professionals.
It is one of my biggest desires to consistantly add value to my clients and potential clients.
This Weeks Resource
A free mapping service to check out. www.terraserver-usa.com The TerraServer-USA Web site is one of the world's largest online databases, providing free public access to a vast data store of maps and aerial photographs of the United States. Interesting Business Brief
Law Firm Signs $30M Lease at One California
GlobeST.com-August 31, 2009
LOS ANGELES-The law firm of McKenna Long & Aldridge has signed a $30 million long-term lease for 62,418 square feet to consolidate offices at One California Plaza, a 992,000-square-foot class A Downtown L.A. office tower owned by Maguire Properties. The law firm will occupy two and a half floors at the 42-story skyscraper at 300 S. Grand Ave. in the Bunker Hill District. The new lease will consolidate two McKenna Long & Aldridge Downtown L.A. offices into a single location and will reduce its space usage from 771 square feet per attorney to 586 square feet per attorney, a move that "will enhance collaboration between our practice groups and allow us to operate more efficiently and cost effectively for clients," according to a statement by MLA chairman Jeff Haidet. By reducing the square feet per attorney, the firm says, it will realize a 31% increase in efficiency. Haidet notes that the new office occupies a fully built-out law firm space with existing improvements as well as space that will be refurbished. The law firm, which will complete construction and move in later this year at One California Plaza, started the search process well in advance of its lease expiration so it was "prepared to pull the trigger on the perfect relocation scenario" when the opportunity arose.
Frequently Asked Questions
Question: Mark, I have been told from a prospective landlord that using a tenant/ broker representative will cost me more money. Is that true?
Answer: No. If the landlord is referring to the fact that they have to pay the broker, that is correct. However, our process creates a competitive environment between competing landlords.
Therefore, the landlord is not going to risk the possibility of losing a tenant by adding a charge for the use of a tenant representative. Additionally, landlords carry a fee to pay a broker for bringing about a lease. If a tenant goes into a lease unrepresented, the landlord keeps the fee .
Archived
May 4th 2009 Newsletter
Premier Issue
May 11th 2009 Issue
|
|
Greetings!
Welcome to the "Tenant Rep Times". You are receiving this edition of my eNewsletter because you rent or own commercial office space and are either my client or a potential client. I trust you will enjoy this issue and get a "gem" or two out of it.
Your email address will only be used to communicate with you and will NEVER be sold, shared, rented or otherwise provided to other entities.
Thank you for taking the time to spend a few minutes with me.
Sincerely,
Mark D. Rauch Senior Vice President Travers Realty Corporation Direct: 213-430-2469
Mobile: 818-943-2959
License # 01019455
markrauch@traversrealty.com
|
|
Office Space Needs Assessment.
By Mark D. Rauch
If there is one aspect of the office leasing process that is usually over-looked, it is the lowly preparatory work to determine the exact requirements in play for office space needs.
Frequently, when office users are considering the office leasing issue, it is likely more a result of an impending lease expiration than any overarching need to make an adjustment in their space. Inertia is quite comfortable and if lease expirations weren't as frequent, there would be a great deal less consternation on the intimate details within the space, good or bad. In Europe, some firms have occupied the same space in the same building in the same town for decades and even centuries. Even firms with the highest of high tech fit right in on the forth floor of a four hundred year old building with no elevator.
Opportunity is in how you look at things. Lease expirations must be looked at as an opportunity to reevaluate your use of space, which starts with how your company operates functionally and determining the ideal.
Human nature frequently forces us to jump right into things we should be better prepared for. When you have decided that you want to start the process, it will be natural to want to go out and see some buildings, kick some tires, act like a customer. Take caution in touring buildings; there is a risk of commencing the landlord's engines revving. This will generate many questions which are unanswerable and possibly actually start some form of negotiations that were unintended. This puts the cart way before the horse, and forces you to loose control. My suggestion is that you leave the urge to see buildings until you are in the best position to manage the information. This information flows from the needs assessment and criteria. Establishing an exact summary of what is ideal for your company will establish a benchmark against which to test not only every other office space you may see in the upcoming year, but also your present space. Functionally, this is very pragmatic. In order to make the office leasing process as smooth as possible, establishing this definitive criteria allows you to test each building you may consider against objective criteria. Such subjective elements like view, image and feel can wait and be tested later, AFTER the objective test is met. Having this fixed test abbreviates the process of touring buildings as certain ones can be disqualified (or put on the runner-up list). Applying this test through your Leasing Team means that you avoid repeating your need over and over to multiple building owners and not telling any two the same information.
Whether a corporate executive, CEO or entrepreneur, this system is set up for easy development and planning. No single element during the leasing process will have such a profound impact on every other decision you make in the future other than the Criteria, Needs Assessment and Programming.
Needs Assessment are the physical, tangible items of your lease which measure how you use the space best to accomplish your business planning goals. Examples would include each individual in the office, each function from offices to storage, work areas, private offices and or modular partitioning, files, conference areas, kitchen or coffee facilities, break or smoking rooms, floor size, floor weight capacity, life safety requirements, parking, telecommunications, automation, supplies, board room, reception area, mail/copy room, executive dining room, storage, computer room, special electrical equipment, special HVAC requirements, law library, and floor weight capacity concerns.
The Criteria are the general senses that you wish to apply to the company such as image, client or customer perception, view from office, view toward or of the building from outside, distance from employee's or executive's homes, proximity to customers or vendors, corporate identity, other tenants in the building and services such as restaurants, service stations, banks, cash machines, and parking. Address any political influences such as the owner or company head likes triangle-shaped offices, requires proximity to his/her country club or can only be in single-story buildings. Are there any real ancillary aspects such as, needing to be in proximity to biggest client (but you don't want him to know it), concerns about your competition, corporate identity as hindrance or help?
Programming is the inter-relation between the Needs Assessment/Criteria and any property which may be considered. The programming also involves diagramming the tenant's functions to their preferred configuration, such as department growth, optimum adjacency and interaction (or need not to) with other company functions.
While some tenants and architects become enthusiastic about a building's image and "already design" prior to first determining the "does it work" elements fostered by the programming, these are the nuts and bolts only after which can the esoteric, design or architectural features be applied.
The architect on your team is best equipped to initiate these matters as he or she will be responsible for determining each location's compatibility with your chosen requirements, performing initial space plans to determine the preliminary layout of the space. The architect should also develop a "Bubble diagram" for quick test fit reference when attempting to qualify certain spaces or buildings.
Some deal of contemplation on the part of the team leader is required to plan forward in time what the needs of each department, person or function of the company will be three, five, seven or ten years from now. Not easy, but considering your business plan or general expectations, you should be able to make some best effort estimates. In addition to being important for just square footage at the outset of the lease, the results have a direct impact on your negotiations for expansion space, contraction rights, early termination privileges and Tenant Finish Allowances provided by the building owner.
After the programming has been roughed out with the appropriate square footage for each person, office, etc., the total square footage should be embellished to account for the common areas, corridors and general traffic areas. The total square footage of the net usable areas does not account for these common traffic areas within an office. As a general rule of thumb, the net square footage should be increased by around 20 to 25 percent, but the architect will be able to accurately determine these square footage based on your type of use; such as Law firm or telemarketing. |
My focused speciality is solely driven to advocate the office space interests of Southern California-based corporations and professional services firms in leasing and purchasing negotiations of all types-renewals, relocations, renegotiations, recasting, subleasing, terminations and investments on a local, regional, national and international basis through a network of offices in 200+ markets around the world. Assignments range from single office lease transactions to national and multi-national real estate portfolios. It is my sincere desire to develop meaningful, long term relationships as your trusted Tenant Rep Consultant and friend. Regards,
| |
|
Mark David Rauch Senior Vice President
License # 01019455
550 South Hope Street, Suite 2600
Los Angeles, CA 90071
Direct: 213-430-2469
Mobile: 818-943-2959
| |
|