Is Your User in the Right Office Space?

CARLSBAD, CA—It's important to know how to help users navigate upcoming occupancy decisions as companies' physical and economic needs change, Lee & Associates' April Kohnen tells GlobeSt.com. Even though a company's space may serve them well today, many factors could cause that space to cease to meet the user's needs in the future.

Kohnen is an associate with the firm's Carlsbad office who specializes in tenant representation, investment sales and multi-market portfolios. She is a Certified Commercial Investment Member designee and California licensed real estate broker. We spoke with Kohnen about how to approach users' changing space needs to avoid a bad fit.

GlobeSt.com: What factors could impact a company's space needs?

Kohnen: Companies that have remained in the same location for an extended period may find that they have maximized its physical and/or economic use. For example, a once emerging tech company that originally chose its location based on the property's low occupancy costs and vicinity to the founder's home, has a different set of criteria in deciding its optimal location as it has tripled in size, appointed a new executive team and wants to be in closer proximity to innovation hubs and larger talent pools.

These challenges are uniform throughout industry types and often unavoidable, but there are strategies that can be helpful in navigating upcoming occupancy decisions.

GlobeSt.com: What's the first step users and their brokers should take to ensure the right fit?

Kohnen: Whether considering a lease or a purchase (local, regional or national), engage a real estate broker ideally nine to 12 months prior to the lease expiration date. This allows your internal team, together with your real estate advisor, to begin defining objectives and drafting a game plan.

A real estate advisor can be beneficial in the early planning stages by providing a summary of the current real estate market cycle, market indicators (going-in cap rates, asking rents and vacancy rates) and recommendations on additional third-party advisors as necessary (architects, relocation experts and economic-incentive advisors).

GlobeSt.com: What should they do next?

Kohnen: Define “haves” and “needs.” First, they must recognize the critical factors to their company, both tangible and intangible. They can define these by looking at their current space demands, vicinity to suppliers, customers, transportation networks, talent pools and a location's political, economic and quality-of-life components.

Next, they must look at their needs. Invest in a visioning and space-programming session with an architect. This is beneficial to all industry types since it enables management to learn the latest workplace trends in a particular industry, build consensus among departments, reflect the company's vision in the new space and know exactly how much space they need and what building systems are required.

Companies that go through the exercise of detailing their space needs, including defining preferred materials and finishes to reflect their brand, benefit in negotiations with a landlord or general contractor because their team will be able to compare proposals easily.

GlobeSt.com: What else should users know about this process?

Kohnen: Ask your real estate advisor for a comparative analysis of options based on your requirements. Regardless of the criteria's complexity, the goal is to maximize a location's function for greater productivity, growth, and prosperity. It is never too early to begin the process of determining the optimal location.

CARLSBAD, CA—It's important to know how to help users navigate upcoming occupancy decisions as companies' physical and economic needs change, Lee & Associates' April Kohnen tells GlobeSt.com. Even though a company's space may serve them well today, many factors could cause that space to cease to meet the user's needs in the future.

Kohnen is an associate with the firm's Carlsbad office who specializes in tenant representation, investment sales and multi-market portfolios. She is a Certified Commercial Investment Member designee and California licensed real estate broker. We spoke with Kohnen about how to approach users' changing space needs to avoid a bad fit.

GlobeSt.com: What factors could impact a company's space needs?

Kohnen: Companies that have remained in the same location for an extended period may find that they have maximized its physical and/or economic use. For example, a once emerging tech company that originally chose its location based on the property's low occupancy costs and vicinity to the founder's home, has a different set of criteria in deciding its optimal location as it has tripled in size, appointed a new executive team and wants to be in closer proximity to innovation hubs and larger talent pools.

These challenges are uniform throughout industry types and often unavoidable, but there are strategies that can be helpful in navigating upcoming occupancy decisions.

GlobeSt.com: What's the first step users and their brokers should take to ensure the right fit?

Kohnen: Whether considering a lease or a purchase (local, regional or national), engage a real estate broker ideally nine to 12 months prior to the lease expiration date. This allows your internal team, together with your real estate advisor, to begin defining objectives and drafting a game plan.

A real estate advisor can be beneficial in the early planning stages by providing a summary of the current real estate market cycle, market indicators (going-in cap rates, asking rents and vacancy rates) and recommendations on additional third-party advisors as necessary (architects, relocation experts and economic-incentive advisors).

GlobeSt.com: What should they do next?

Kohnen: Define “haves” and “needs.” First, they must recognize the critical factors to their company, both tangible and intangible. They can define these by looking at their current space demands, vicinity to suppliers, customers, transportation networks, talent pools and a location's political, economic and quality-of-life components.

Next, they must look at their needs. Invest in a visioning and space-programming session with an architect. This is beneficial to all industry types since it enables management to learn the latest workplace trends in a particular industry, build consensus among departments, reflect the company's vision in the new space and know exactly how much space they need and what building systems are required.

Companies that go through the exercise of detailing their space needs, including defining preferred materials and finishes to reflect their brand, benefit in negotiations with a landlord or general contractor because their team will be able to compare proposals easily.

GlobeSt.com: What else should users know about this process?

Kohnen: Ask your real estate advisor for a comparative analysis of options based on your requirements. Regardless of the criteria's complexity, the goal is to maximize a location's function for greater productivity, growth, and prosperity. It is never too early to begin the process of determining the optimal location.