TheSquareFoot - Leasing Space For Your Business
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TheSquareFoot - Leasing Space For Your Business

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Have you been looking for a space solution for your business? Do you feel overwhelmed with the commercial real estate system? ...

Have you been looking for a space solution for your business? Do you feel overwhelmed with the commercial real estate system?
Our friends at The Square Foot dispel much of the smoke and mirrors when it comes to commercial real estate and they’ll be here next Tuesday to fill us in! Here’s a little bit of what they’ll cover:
Different varieties of spaces available for lease
Commercial Real Estate as an old industry (and the skeletons we inherit)
The benefits of a tenant broker
Crucial factors to consider when searching for space
Differences between listing agents and tenant brokers
What is coworking and how does it affect this ecosystem?
We certainly have our biases for coworking (Full disclosure: we’re a coworking space), but this sessions should be useful to all business owners and freelancers looking for a home base.

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TheSquareFoot - Leasing Space For Your Business TheSquareFoot - Leasing Space For Your Business Presentation Transcript

  • TheSquareFoot:Commercial Leasing Workshop
    Caroline Collective
    October 18th2011
    http://www.thesquarefoot.com/houston/
  • I Am Thinking About Leasing Space
    What type of commercial space is the best fit for my business?
    What should I expect from the process?
    Who are the players?
    What should I avoid at all costs?
    How long of a lease should I sign?
  • Types of Commercial Space:
    Office-traditional, executive suites, shared space, sublease, co-working – GO CAROLINE COLLECTIVE!, Virtual
    Retail-free standing, strip center, community center, regional mall, power center.
    Industrial/Warehouse-heated & unheated, refrigerated, controlled humidity
    View slide
  • Traditional Office
    Fill up most of the buildings you see around you everyday
    Majority of leases are for 3-5 years
    Typically 1000 sf+
    Multiple employees
    Medical space has slightly different leases and build outs due to the nature of the business.
    View slide
  • Executive Suites
    Smaller floor plans with more flexible lease terms.
    Essentially an independent lessee, breaking space up and having their own agreements with tenants.
    Common areas: conference rooms & kitchenettes.
    Often pre furnished
    Receptionist might be on hand acting as an office administrator.
  • Virtual Office Solutions
    Remote Receptionist-call forwarding, messaging services
    Reputable professional address without the cost
    • Accept, send, forward mail without using a PO Box
    • Alleviates privacy and security of a small business
    • Ability to expand into new markets with a provider with multiple locations
    On demand (hourly, daily, weekly) use of conference rooms
    Davinci - $60-$250/month
  • Shared Space
    Rent unused space from a tenant with a direct lease.
    Rent a single desk, office, or group of offices.
    Common reception, conference, copy, fax, pantry.
    Lawyers, Accountants, commonly offer shared spaces.
    Matching Services to put those in need with those offering.
  • Sublease
    Existing tenant leases out their space to another tenant with the landlord’s consent.
    Original tenant MAINTAINS RESPONSIBILITY OF ORIGINAL LEASE AGREEMENT
    Savings can range between 15%-40% under typical vacant office market rates.
    Flexibility / Furniture
  • Coworking
    Social gathering of a group of people who are working independently, but who share values.
    Conducive for those interested in the synergies that can happen from working with talented people in the same space.
    Great solution to the problem of isolation that many freelancers experience while working at home or in a confined office arrangement.
  • Retail Space
    LOCATION IS EVERYTHING
    • Visibility
    • Street access
    Free Standing
    Strip Center-common parking, no major department or grocery store
    Community Center-day to day needs, anchored by grocery store with support stores for personal services
    Regional Mall-serve 5-15 mile radius, current fashion goods spanning the general, apparel, home furnishings, & other merchandise categories
    Power Center-few tenants most of which are anchor (big brand) tenants.
    • Best Buy, Linens N Things, Home Depot, Old Navy
  • Industrial / Warehouse
    Lot of Logistics
    • Transporting inventory and all the associated costs and issues that can arise
    • Loading Docks
    • Truck Wells, recessed, platforms,
    • Correct height docks
    • Ceiling Height
    • 24 feet or enough room for stacking 3 forklift pallets
    • Office, Storage, Parking-Trucking Volume
    • Refrigeration, Climate Control
  • The Process
    Commercial real estate is a massive industry with lots of jargon
    • Buying Land
    • Selling Land
    • Developing Buildings
    • Leasing Buildings
    • Selling Buildings
    CRE is an “old school” business which has yet to significantly adopt technology
    Industry benefits from protecting information and uneducated consumers.
  • Rental Rate
    $ per square foot X square feet = monthly rate
    Annual rental rate
    • Price per square foot X 12 (months)
    • Ex: $1.00/sf = $12.00/sf annually
    • Ex2: $2.00/sf = $24.00/sf annually
    Houston averages
    • Office = $25 (for Class A)
    • Retail = $18
    • Warehouse = $5
  • The Players
    Tenant = YOU!
    Landlord
    • Individual property owner
    • Large corporation
    Landlord Broker = Leasing Agent FOR THE LANDLORD
    Tenant Broker = BROKER REPRESENTING YOU
  • Tenant Brokers
    Does all of the heavy lifting for you
    Is a market expert
    Is a lease negotiating expert
    IS PAID BY THE LANDLORD
    Would you walk into a courtroom without a lawyer?
  • Things to avoid
    Procrastination
    • We recommend initiating space search 6 months in advance of moving
    Calling signs on a building
    • Give up leverage
    RELYING ON ONLINE LISTINGS
  • Other Online Tools
    TheSquareFootLeasopedia – http://www.leasopedia.com
    OpenOfficeSpace –
    http://www.openofficespace.com
    RateBlend –
    http://www.rateblend.com
  • Questions?