OS Colliers Office tenant guide

Colliers

Occupier Services

2 nd step Evaluate market alternatives

It’s not all about cost When evaluating your property options, do not forget to consider the non-financial costs and benefits for each property option. Colliers’ Workplace Advisory experts can help you evaluate each option’s impact on factors such as staff productivity and communication, corporate iden tity, IT and communications performance as well as your customer base. If appropriately engaged at Step 1, your Colliers Workplace Advisory expert will have maximised their ability to positively influence the workplace brief. In today’s challenging business environment, it is critical that organisations extend beyond the traditional view of office accommodation and the measurement standards nor mally applied. It is now a fundamental requirement that the office ar chitecture supports the intellectual work demanded of employees and facilitates an organisation’s continuous improvement strategies. It must also contribute to the de velopment of team networks and organisational learning systems. In addition, the office systems must support or ganisational change efficiently, effectively and with mini mal redundancy. Test fit the options to determine workspace efficiencies By conducting a design ‘test fit’/site audit of the shortlist ed options, your workplace designer will determine the workspace ratio efficiencies for each property. This pro cess produces sample fit-out designs prior to your agree ing to terms. This process helps determine your fit-out costs and will also enable you to compare your premis es options on financial (e.g. fit-out costs) and non-finan cial (e.g. optimisation of the workplace brief) criteria more effectively.

Your workplace designer will provide the following services during this critical evaluation phase: • Assess items suitable for reuse in the new fit-out • Prepare a test fit to see if a selected site can fit your requirements • Prepare preliminary concept designs • Manage the pre-design process, including a review by the landlord • Provide a draft proposal outlining approximate costs.

Your renewal option should include expansion/contrac tion costs as well as potentially reconfiguring or com pletely refurbishing your workspace. Aim for a shortlist of three-four properties. Evaluate options against your brief, ensuring that the property options match your stated business objectives. Colliers has developed a range of decision models and matrices to assist in the decision-making process, thus enabling shortlisting a wide range of options. These tools dramatically improve efficiency in the evaluation process.

Financial analysis There are several ways to compare leasing financials, including: • Net effective rent per sq m • Gross face rent per sq m • Gross/net rent per sq m • Total occupancy cost per employee.

Inspect and evaluate your options Release your brief to the market to avoid having to deal with multiple consultants. You can request that your Colliers consultant approach the market on your be half. With intimate knowledge of the market along with a well-established network of agents and owners, Colliers will act as a single point of contact while still sourcing all space opportunities. Colliers will also assist in negotia tions with your existing landlord regarding renewal op tions. Inspect and evaluate alternative premises options, your current premises and prepare a shortlist When analysing alternative premises, consider timing, financials, whether to lease or purchase and other incentives that may be on offer.

Further details on these measurements are provided in the glossary of terms. Look beyond the square meter rate on offer. Some office space is highly efficient, enabling you to seamlessly accommodate your employee quo ta in less space. For example, you may require 500 sq m to accommodate your staff in one building, whilst anoth er may be able to house them comfortably in only 400 sq m. In this instance, it does not make sense to compare the two options based on their rate per gross sq m, as a lease analysis model that factors in the building efficiency should be used instead.

Lease conditions such as renewal requirements can also impact the attractiveness of a particular option.

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