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Search. Before you search - give
some real thought to all of the solutions to your space needs - staying put and
re-working your layout, out sourcing a portion of your operation, taking an
additional building from your current owner. Also, engage someone who can
assist in zeroing in on precisely how much square footage you need.
Negotiations. In a word - Realistic! If
you attempt to scalp an owner these days - you’ll be disappointed. Figure out
why you are moving. Will you top line revenue increase by a large percentage?
Will you be able to give a key employee a private office and thus increase her
efficiency? Will a move translate into cost savings? Are you more proximate to
labor or suppliers. When considered through this lens - a few cents per square
foot or dollars on the purchase price pales.
Due
diligence.
As a commercial real estate owner - do yourself a huge favor and prepare your
building for sale. Please don’t use your precious marketing time unwisely!
Order an inspection so you know what repairs are needed. How’s the roof? Does
the property have a rich environmental history? Make the necessary repairs.
Disclose the others and price accordingly. Gather all of the pertinent
documents a buyer will need to review such as - utility bills, leases,
operating statements, insurance, plans, and permits. Stage your building as
though it was appearing on an episode of Property Brothers. You’ll be grateful!
Financing. Buyers. Get yourself
pre-qualified! I would also suggest choosing a lender, having them do a
thorough underwriting of your package and know where your source of funds is
originating. Many times in today’s competitive market - without a
prequalification - your offer will simply be overlooked for one that is
complete.
City
approvals.
Two suggestions here. The first would be to visit the municipality where you
are considering relocating. Ask ask them where they would suggest you locate.
The second suggestion would be to hire a person who can help you navigate the
various city issues you will encounter.
Transition
planning.
Moving is expensive, disruptive, and inefficient. While considering your area
of re-location – also have a moving and storage company give you a bid on the
timing and cost of your move. Armed with the specifics - you’re now equipped to
venture into the available space market.
Allen
C. Buchanan, SIOR is a principal with Lee & Associates Commercial Real
Estate Services. He can be reached at 714.564.7104 or abuchanan@lee-associates.com
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