Whether seeking a new lease or renewing an existing lease, the benefits are clear
Reducing your real estate cost can create an immediate and dramatic increase in profitability and an increases in financial efficiency and flexibility. This is particularly relevant in today’s increasingly competitive business for three reasons:
- Since the sharp decline in real estate values during the Great Recession, many businesses are still over-paying for their real estate, and are unaware of the options available for reducing their occupancy costs before it’s too late.
- Exponential increases in technological innovation and workplace efficiency continues to create opportunities for businesses to occupy less space versus unnecessarily occupying more space than they need, and paying the price.
- Even the smallest reduction in overhead can mean the difference between a business’s survival, bottom line or competitive edge.
Many businesses fail to proactively manage their corporate real estate because they underestimate the business risk involved in not doing so, or don’t have the time or expertise.
Outsourcing corporate real estate management to a professional real estate consultant can be very beneficial. Doing so will ensure that occupancy costs are kept to a minimum and that the corporate real estate remains efficiently aligned with the business plan.
The cost of hiring a real estate broker is minimal and often pays for itself many times over. The process involves an understanding of the business’ real estate requirements and budget, investigating every option for reducing occupancy costs, determining the net occupancy cost savings of every option, and professionally executing a process to achieve the required results.
There are five ways to reduce your occupancy costs and potentially control these expenses over the long term, including:
- Lease Audit and Service Charge Scrutiny.
- Disposition of surplus space by sublease.
- Early lease renewal to reduce rent/ operating costs to fair market value or below.
- Lease renegotiation to reduce total occupancy costs to an affordable amount.
- Lease termination/buy-out.
We’ve proven to typically reduce clients’ occupancy costs by up to 30% on service charge scrutiny, new leases, lease renegotiation and renewals and up to 100% on subleases and assignments. So, if you haven’t professionally and thoroughly reviewed your corporate real estate and occupancy costs, we’ll gladly provide a complimentary no-obligation consultation and occupancy cost audit to determine any options to quickly reduce your overhead.