On occasion, one of our clients outgrows its local facility, expands into another part of the country, or needs real estate advice in a market beyond our expertise.
When that happens, our role changes.
Rather than simply referring the client to a broker in another city and hoping for the best, we employ what I call a client services approach. It includes the traditional brokerage functions of identifying alternatives, touring properties, negotiating terms and completing a transaction, but adds another layer: analysis, accountability and strategy.
Think of us as the quarterback.
We remain responsible for understanding the business requirement, helping establish the real estate strategy, identifying and engaging the right local professionals, keeping everyone accountable, comparing alternatives on a consistent basis and making certain the recommendations support the client’s larger business objectives.
Over the years, I’ve found these assignments generally begin in one of three ways.
A client has outgrown its existing operation and needs more space. A company is expanding geographically and entering a market it doesn’t know. Or an existing location somewhere outside our home market reaches a decision point: renew, relocate, expand, contract, buy or perhaps exit altogether.
In each case, our process begins before we look at a single building.
Understand the requirement
What is driving the assignment? Growth? Labor? Customers? Transportation? Cost? An acquisition? A lease expiration?
Square footage is important, but it is rarely the entire story. We want to understand headcount, equipment, power requirements, loading, clear height, yard requirements, employee commute patterns, customer proximity and the timing of the decision.
More importantly,
we ask what the new location must accomplish for the business.
Build the strategy
Once we understand the requirement, we can determine where the search should occur and what alternatives should be considered.
Sometimes the answer is obvious. Frequently, it isn’t.
Should the company lease or buy? Should it expand its existing operation or open another? Is the preferred market really the best market? How do occupancy costs, labor availability, taxes, incentives and transportation compare among several locations?
This is where analysis becomes particularly important.
Assemble the local team
Commercial real estate remains remarkably local.
A broker who works a market every day understands ownership personalities, upcoming vacancies, off-market opportunities, municipal issues and nuances that someone parachuting into town simply won’t know.
Our job isn’t to pretend we possess that knowledge. It is to find the professionals who do.
We identify and vet local brokers and, when necessary, attorneys, architects, contractors, economic-development officials and other specialists. The client gets local expertise while retaining a single point of strategic accountability.
Create accountability
Here is where the client services model differs most from a simple referral.
We stay involved.
We establish the process, timetable and deliverables. Alternatives are compared using the same criteria. Proposals are analyzed consistently. Calls are scheduled. Responsibilities are assigned. Deadlines are tracked.
Someone owns the process from beginning to end.
Execute the transaction
Eventually, all that strategy and analysis must produce a result.
A building is selected. Economics are negotiated. Due diligence is completed. Documents are finalized. The company moves in.
Those are familiar
brokerage functions. But by the time we reach them, much of the important work
has already occurred.
Years ago, I believed our value as commercial real estate brokers was largely measured by how well we knew our local market.
I still believe local knowledge is enormously valuable.
But when clients grow beyond our geography, our responsibility grows with them. Our value becomes less about knowing every available building and more about knowing how to build the right strategy, assemble the right team, analyze the choices and hold the process accountable.
Sometimes the best way to serve a client isn’t to have all the answers.
It’s to make certain the right questions are asked, the right experts are engaged and someone remains responsible for getting the client where it needs to go.
