5 common mistakes when searching for a new office
Finding new offices may seem very simple at first. What problems do companies often encounter?
Time is money. And it matters no less when searching for suitable offices. Therefore it is necessary to start working on the move of headquarters as well as on adjustment of the current lease contract in advance. Effective savings can only be achieved with negotiations that start on time. Based on our knowledge the optimal time to start negotiations is at least nine months before the current lease contract expiry. Within this time perspective we can offer to our clients complex market overview. And once we know lease conditions in preferred locations we are ready to negotiate the best conditions with the landlord.
In case the tenants decide not to cooperate with the professionals, the process can take even longer. They will search for suitable offices to find satisfying savings and it will take their time they would normally spend on the day-to-day work.
2/ LOCATION WITH LIMITED ACCESSABILITY
Working day is not over by 5pm for each of your employees. In case you choose the headquarters base in location with limited access by public transportation outside peak hours, it is understandable the employees who are dependent on public transportation are not going to be motivated to stay overtime as they would face complications getting back home. Particularly companies with shift work operation should not forget this aspect at all. Prague is safe city but during the night its character can get different.
3/ UNSUFFICIENTLY PLANNED SIZE ESTIMATION OF THE OFFICES
The standard duration of the lease contract is five years, exceptionally the lessor accepts three years period. Majority of companies plan their business in similar time periods, but in these turbulent days the original intensions can get changed easily. The companies might expand or face unexpected downturn. These two factors would always have impact on the change of the offices size. Therefore flexibility of rented offices should be taken into account while the lease conditions are negotiated.
4/ MARKET KNOWLEDGE
In case you are not daily involved in commercial real estate market, it is really difficult for you to have clear idea about the market conditions. You do not know the lease terms, standards provided by the landlords and do not see opportunities which are advertised off market. Therefore, consultation with professionals is the best choice.
5/ NEGOTIATION SKILLS
There is no doubt about your negotiation skills, however, without necessary information and market knowledge it is hardly possible to negotiate the best conditions. Even in case you are not new in negotiations with landlords, it is good to realise, that commercial real estate market is changing rapidly and conditions you managed to negotiate for the previous lease period could have significantly changed.