Friday, May 17, 2013

Location Advice...not what you think!

I provide Location Advice to owners and occupants of industrial buildings in Southern California. So what is Location Advice anyway?

I certainly know...but do you? Well I believe it is time for a review for all of the millions of readers out there...thanks Honey...that are curious. So here goes!

The premise: Every business has one thing in common...whether its a multi national corporation or a home based start-up...and that is...drum roll, please...you guessed it, A LOCATION! Whether your company occupies ten floors of a Manhattan high rise or the guest bedroom of your house, a million square feet of high cubed, ESFR protected warehouse or a desk in your dining room...all businesses have a location...thus the need for advice on your location.

Are you an owner, an occupant or both? Figure this out as the advice you seek and the advice that we can provide will differ and vary (especially the cost).

Advice to owners (non occupants): Referred to as landlords, lessors, investors
You need our advice when your occupant vacates your building and you need to locate a replacement tenant or buyer for your building. We provide the marketing, showing, advertising, publishing in the multiples, to attract an occupant...whether directly or through a cooperating location advisor (CRE broker). We can also help you with market data, comps, avails, opinions of value, trends, vacancy, requirements in the market as to tenants and buyers, etc. The fees for this advice are owed when the transaction is completed (in California) and are generally a percentage of the consideration...IE: $10,000 per month for 60 months is $600,000 X 6% is $36,000 shared between the owner and tenant representative.

Advice to owners (occupants): Referred to as owner/users, owner/occupants
Same as above however we have to advise you based around your business operation in the location...tricky if you decide to locate a new occupant while operating in the location. The post I recently authored regarding being out of space but not wanting to move was written with an owner/occupant in mind...net, you should do everything possible to postpone moving.

Advice to occupants (non owners): Referred to as tenants, lessees
The advice we provide is geared around you moving your location and purchasing, moving your location and leasing, or staying in your existing location and helping you renegotiate your lease. Regardless of the advice provided, the occupant does not pay us...the owner of the property does. You should get the best advice you can (experience and area expertise) as your location advisor is YOUR advocate and will represent your requirement to the market...owners and CRE brokers. The process we undertake is extensive and most CRE service providers will require a signed engagement.

Additional advice on an hourly fee basis: Expert testimony, broker opinions of value (BOVs)