Key Considerations for Your Corporate Property Strategy
Leaving things to chance is an easy mistake when you’re busy with your company. But when it comes to real estate, it can be very costly.
Don’t treat your real estate assets like they’re events beyond your control. In fact, your commercial property has a direct impact on your corporate objectives.
Your property decisions will affect elements such as:
● Employee satisfaction
● Available space for new technology and processes
● Room for expansion
● Company flexibility
Most businesses know that they should have a corporate property strategy, but aren’t sure where to start.
Here are a few key considerations, to get you started.
Remember what a commercial property strategy is.
A strategy is far more than just a goal like ‘buy a spacious property with easy accessibility.’
A strategy includes a pattern of decisions relating to your property goals that all help support your overarching corporate strategy.
This means that you need to have the main objectives for your business front of mind. When you’re clear on the bigger picture, make sure every choice you make regarding real estate helps get you closer to those business objectives.
Carefully consider location.
Finding the perfect property in the perfect location can be difficult and inevitably you’ll always find yourself having to make decisions on what means the most to you.
You may find yourself weighing up the poor location of a property with its great attributes or vice versa. Which aspects are most important to you? Is there anything you can do to make improvements to the real estate and boost its value? Would that be a smart investment?
Remember to consider a piece of real estate from all angles and be ready to make a decision based upon corporate priorities, not an impulsive emotional response.
Think about your short-term goals.
Do you need to grow your brand with a mainstream audience, and reach more potential customers? Consider factors such as traffic and signage opportunities, accessibility and parking as part of your corporate property strategy.
Are you looking to attract more talent to your team? More investors? Reach a broader customer base? Incorporate some new processes or apps or tech software? All of these questions have implications for your strategy and you have to consider how a certain property can meet those needs.
Being able to adjust and grow and even pivot your company when required is a critical survival technique.
Make sure to choose a piece of real estate that will support your company’s potential need for change and innovation. This is an important part of risk management, and could save you lots of money and even your business.
Look to reduce costs.
Naturally, you want to think in terms of saving money when you buy or sell real estate. Almost all companies include this concept in their strategies, but you need to remember that there’s more involved than just saving a penny in the short-term.
Remember to look down the road to anticipate how the decisions you make now will result in further savings or returns. The cheapest option in the here and now may not be the most financially beneficial.
Pay attention to your lease.
Keep track of more than just an expiry date. Find out your options for renewing it, terminating it or taking advantage of its terms.
Know what you want out of a lease before you sign anything. Keep your company’s objective and goals in mind so that you’ll be able to assess how a lease’s terms measure up.
In summary, don’t just have a strategy for your real estate - make real estate a part of your corporate strategy.
Need help with your corporate property strategy? Contact Broadway Property for a free initial discussion about your needs.
- Ben Heritage and Ryan Stewart, Directors, Broadway Property