When the decision has finally been made to move to larger quarters. You may be wondering how to get started.
The place to start is PLANNING. I capitalized the word for a reason. I guarantee that whatever time you spend in planning, and the preparation of your “game-book”, will save you 10 times that in wasted time and aggravation in the eventual search. (You will be tempted to go out and look at space – resist the temptation! Searching for space should be reserved for later in the game.) If you are going to be working with an exclusive tenant or buyer agent (which I recommend), then you definitely want to draw him or her into this planning process. Here are some of the key questions to address on paper:
When: Like a well-planned meal, the relocation process must be timed so everything comes together at the end. Real estate, design and space planning, communications, legal, construction and the actual move all have to be planned and coordinated. A small company may be able to get it all done in 6 months, while larger companies may talk in years. Start much earlier than you think you need to! Certainly a year out from your relocation target is a time to, at the very least, start asking questions. The planning process should include a time-line, often in the form of a Gantt chart, showing the overlapping tasks and the critical paths.
Who: Who is on your team? Identify your internal team first, understanding that their relocation work will detract from their normal duties. Your external team will probably consist of your attorney, real estate broker/consultant, mover, and either your CFO or accountant. It may also include communications providers, interior designers, space planners, facility engineers, general contractors and furniture vendors. You need to identify which team members are necessary, and how they are to be selected.
What: How much space is required and what type? Now is the time for a full analysis of your space needs. For a relatively basic move, a space program prepared by your broker/consultant may suffice. A more sophisticated move may require a high-powered report from a facilities engineer. If you are relocating to industrial space, items such as warehouse height, loading doors, power, amount of office space all need to be defined. Your broker will have checklists for you to use in this analysis.
Where: What is your geographical range? Usual consideration includes commuting distance for key employees, amenities, services available and of course, pricing. Industrial relocations may also include such criteria as utilities, shipping and various governmental incentives. We usually qualify the furthest range of consideration by asking our clients at what point they would NOT want us to mention “the perfect building in every other respect.”
How much: A financial analysis and budgeting are required early in the process. Your broker can give you reasonable estimates on real estate costs and financing. Other experts, consultants and vendors should be able to provide the same in their respective fields. We use discounted cash-flows over the term of occupancy to help our clients understand their bottom-line costs in a potential move. Your own financial statements should be reviewed by experts, with these cash-flow estimates in hand, to ascertain that you can achieve the financing that you may require. In the case of a lease, you want to ascertain that you can lease what you need with minimal lease enhancement, such as personal guarantees or a letter or credit.
Spend the time to do this right. If you and your team (both internal and external) can nail down the planning process, you are well on your way to a successful relocation.