We currently don’t have a strategic real estate plan. What are the benefits?
Answer: The benefits can be astounding.  A good strategic real estate plan identifies and solves occupancy as well as operating requirements.  It develops an on-going occupancy strategy that compliments corporate objectives to enhance operations and maximizes the value of your real estate holdings / investments.  Most importantly, a strategic real estate plan gives you the ability to make well-informed real estate decisions.  We invite you to learn more about Staubach’s Financial & Strategic Consulting Services. (Return to Top)

We have multiple leases expiring at different times in diverse markets. How should we best manage our portfolio?
Answer: As companies grow, there is an increasing need to effectively manage the critical elements of all your obligations – leased and owned.  Within each lease, there are a number of obligations for both the landlord and the tenant to perform.  The financial obligation is only one of the elements.  Other elements of particular interest should be the management of critical dates for termination rights, first rights of refusal on expansions, and renewal options.  The proper management of these dates can save your organization thousands if not hundreds of thousands of dollars.  To learn more about the effective management of a real estate portfolio, please see Staubach’s Corporate Real Estate Outsourcing Services. (Return to Top)

As a mid-sized company, we lease space. What factors should we consider regarding renewing leases or looking for new space?
Answer: There are always options to consider.  It is a matter of figuring out which option best meets the needs of your company.  First, understand your company’s growth plans from a business perspective as well as an employee perspective – this will give you an idea of your future real estate needs.  Second, develop a budget and understand your finances so you can target the types of space you can afford based on your space requirements.  With this information, you can then compare your company’s space and financial needs to your existing lease for possibilities of renewing as well as to other options that exist in the marketplace.  For more information on assessing your options, please see Staubach’s Office Services. (Return to Top)

We lease now, but we have an option to purchase. Should we?
Answer:  Options are always good but you need to figure out if it is makes sense financially.  Understand your company’s business and its growth plans.  First you need to estimate your future space requirements to see if your current facility can accommodate your needs.  If it will, you need to know the costs involved not only in the purchase of the facility but also the costs involved in the on-going maintenance and repair.  To learn more about this topic, please see Staubach’s Acquisition Services. (Return to Top)

We currently own properties. What is the economic impact of sale/leaseback transactions?
Answer:  Many companies own facilities but owning also ties up capital in your real estate.  Sale/leasebacks can free up capital for you to reinvest in your business or use in other important areas.  For more information on sale/leaseback transactions, please see Staubach’s Capital Markets. (Return to Top)

When does it make sense to build vs. lease? And speaking of construction, we have leased space that needs significant finish out.
Answer:  It is really a matter of cost.  You need to understand the costs associated with building and maintaining your own facility and compare that to the costs associated with leasing similar type space.  Regardless if you want to look at build-to-suit options or possibly renovating your existing space, you should understand the value Staubach can create with our Design & Construction Consulting Services. (Return to Top)

We like our space, but the rate seems high. Do we have any options, short of moving, when the lease expires?
Answer: You do have options.  During periods when market conditions are weak, the cost of replacing good tenants goes up.  That’s because it takes longer to find new tenants which means space is sitting empty longer.  The bottom line is, during periods of uncertainty, landlords are focused on keeping tenants.  If you plan to stay in your space for at least 5 years, you can renegotiate your lease early to take advantage of lower lease rates.  The landlord benefits by securing a valuable tenant for a longer period of time.  For more information on these options, please see Staubach’s Office Services. (Return to Top)

To be honest, we’re not on the greatest terms with our landlord. What can we do to get some needed improvements to our space when we renew the lease?
Answer:  If your goal is to renew your existing lease, you should look at other options in the market as well as your existing facility.  This will first allow you to compare your situation with other market alternatives as well as create leverage for you in discussions with your existing landlord.  If your existing landlord would like to keep you as a tenant, they will be willing to negotiate on certain issues.  You create leverage by the landlord knowing you are looking at other alternatives.  To learn more on renewals, please see Staubach’s Office Services. (Return to Top)

We’re looking to locate a new facility that requires a specialized workforce. Does your site selection process take this into consideration? We’d also like to know what our competition is doing.
Answer:  Customers come to know companies through interaction with their representatives.  Often, the only contact customers have is non-personal via the telephone or internet.  The front line agents interacting with your customers are the lifeline of your business.  Competing for the best labor does not require an operating budget larger than your competition.  Multiple factors affect a workers decision on employment including compensation, benefits, career path, company image, job stability, physical work environment and commute.  The right location can deliver a better quality and lower cost workforce.  For more information on call centers, please see Staubach’s Call Center Specialty Group or our User Representation Services. (Return to Top)

Our business depends on state-of-the-art logistics. Is this an area in which you have expertise?
Answer:  Logistics is a crucial element to many businesses.  We employ a phased process that includes optimization planning, site selection, real estate acquisition / disposition, logistics outsourcing, design and construction consulting, and real – personal property financing services.  Specifically, our optimization planning services will focus on maximizing the overall distribution system through a logistical audit, distribution network analysis, facility consulting and logistics outsourcing study.  To learn more about our logistics capabilities, please see Staubach’s Logistics Specialty Group. (Return to Top)

The market has changed and we have excess space at the moment, both leased and owned. Do you help sublet properties? And is now the time to sell our unused owned properties?
Answer:  The best advice on surplus property is to strategically look at your business to assess your future real estate needs.  This will give you the ability to target the properties that are truly surplus and develop a disposition strategy.  Of those properties that are surplus, prioritize them based on their costs to operate or maintenance expenses so that you may minimize your losses.  For more information on dispositions, please see Staubach’s Disposition Services. (Return to Top)

We just received the annual reconciliation statement from our landlord for our operating expenses. What is the best way for me to review and make sure this information is accurate?
Answer:  Annual reconciliations should definitely be checked for accuracy – mistakes do happen.  Be sure to understand the terms and conditions contained in your lease including all rental and additional rent (operating expense) obligations.  The landlord's pass through expenses and records shown on the annual reconciliation should be verified for accuracy against the additional rental provisions of your lease, whether it be a base year, expense stop, or a direct pass through expense mechanism.  Staubach is more than willing to help you review your reconciliation statements for accuracy.  For additional information on this, please see Staubach’s Office Services. (Return to Top)

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