By Graham Summers
Jones Lang LaSalle
Tenants move for different reasons, but it’s quite a task for most. As a result, the reasons are typically warranted. Here’s why (usually):
- PRICE, it’s always a consideration, and sometimes there’s just a better deal next door
- Building ownership: buildings are constantly flipping to new ownership groups, and unfortunately some back to the bank. Tenants regularly consider local vs. national / long term holder vs. quick seller
- Flexibility: Tenants grow and shrink, and often times buildings cannot accommodate the changes
- Property management: Most of the time, building owners do a solid job tending to existing tenants, but things do change, and this relationship can get rocky quick (number one Tenant complaint: HVAC issues)
Those are the obvious factors, but from our experience, there are additional drivers that are sometimes even more important. Here are a few of the more qualitative considerations:
- Recruiting: competition for top talent is fierce, so a location in close proximity to the target workforce can be crucial
- Amenities: employees always want access to lunch options, shopping and happy hour spots
- Morale: sometimes, people do like change. A new, fresh space can boost employee mood and improve day to day operations
- Proximity to competition: if you’re not thinking about why you are, where you are, the competition probably is. There is a reason most of the law firms are located in the CBD and most of the tech companies are in the suburbs, and we’ve got the mapping to prove it!
Weighting each point of consideration is a useful exercise in evaluating the potential impact of a relocation. Working with an experienced real estate broker can help ensure that you make the best decision possible.