What You Will Learn in This Video on The Value of Strategy in Real Estate Planning:
- Real estate strategy is crucial for long-term success. It’s not just about immediate needs, but also about future growth and potential changes in the business.
- Understanding the client’s business is key. This involves asking questions about their growth plans, potential acquisitions, and any other factors that might impact their space requirements.
- Negotiating for future flexibility is important. By anticipating future needs and incorporating them into the lease agreement, businesses can avoid costly and disruptive moves in the future.
- Building strong relationships with landlords is beneficial. This can help secure favorable lease terms and ensure that the client’s needs are met over the long term.
Video Transcript:
“From time to time, you refer to yourself as a real estate strategist. What kind of strategy can there be in selling properties?
Well, there’s a lot of strategy because sometimes I’ll go into a prospective client and I’ll say, ‘Tell me what your needs are.’ And they’ll start to say, ‘Well, I need five offices and I need 10 cubes and I need a conference room.’ And I say, ‘No, that’s not really what I’m talking about. What I really want to know is what’s happening in your business. Are you growing? Are you shrinking? Are you staying the same? Are there any plans to acquire other companies to add more people?’ Because leases today are typically seven to ten years, and I’m not looking backward in terms of the space they have now. I want to look forward for the next 10 years. And if they have thought processes about specific needs, like growth for instance, I try to program that growth in by as part of my negotiation.
I mean, a perfect example is we’re sitting in a client’s office today doing this interview. We began here in 2001 with 13,000 feet. Now we occupy 44,000 feet, and we’ve done it in an orderly fashion and through my thought process, if you will, of how are they going to expand, what are they going to need, and through my relationship with the landlord and making sure that I’m keeping up on leasing activity in the building. That’s enabled us to do that. Otherwise, we could be on three different floors in many different spaces, and it would not be an efficient working operation for the client.”
Partner with an expert Real Estate Advisor. Contact Howard Properties Ltd today,