OS Colliers Office tenant guide

Colliers

Occupier Services

How much will it cost?

When should I start?

CASE: Phillips-Medisize

Plan plan plan Considering business continuity is important when exploring your of fice leasing options, and having the right knowledge is the key to deciding whether your office should move or not. Allow sufficient time to ascertain your current situation, review other op tions, assess the marketplace context and negotiate with your current landlord to ensure that you optimise the end result. Timing The period required to conduct this process ranges from three to six months as a bare minimum, and upwards of two years or more for larger organisations. The timeline is dependent on several factors. These include the stipu- lated notice period of your intention to renew or terminate (mentioned in the lease), the size of the space occupied, the market conditions and the nature of the asset.

Colliers found and negotiated a flexible full-scope office solution so that Phillips-Medisize could focus on hiring staff and ramping up operations of the new innovation centre.

Operational cost The negotiability of rents and incentives are dependent on the equilibrium in the local market. In certain markets, the deve- lopment cycle has created favourable circumstances for tenants considering relocation. Conversely, in certain markets landlords hold the cards. To understand conditions in your local office market, contact your Colliers consultant for the outlook in your location. If you require a regional overview or have requirements in multiple markets, Colliers’ team of regional experts in the Occupier Services depart ment can offer a single point of contact and strategic advice for your various needs. Fit‑out and reinstatement costs Your entry into and exit from a lease contract can greatly affect the real cost of your commitment. Workplace design and fit-out costs should be viewed as an organisational opportunity; a well- planned and executed fit-out will adapt to your organisation’s growth and changing needs and will minimise churn costs. Therefore, balance between your fit-out costs and the benefit it yields to your organisation is critical.

Who should I involve?

Your internal steering committee should be chaired by a senior employee, supported by decision makers and influencers, including HR, IT, divisional heads and staff. You may wish to conduct a survey among your staff to determine their needs, preferred working style and location. Colliers has a proven in-depth tenant needs analysis survey available to assist in this step. Professional real estate advice is a critical part of the project team skill set. This will arm you with insight into the office market status quo, your alternative options and the financial implications of the stay vs. go scenarios.

In addition, reinstatement commitments have the potential to af fect your cashflow when exiting a lease.

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