Whether your company is starting
out, expanding or opening a
new location, the process of finding a space and getting moved in can
be a difficult one. After scouring your
area for the best neighborhood and the
best space, your work is just beginning.
Getting from choosing your location to
actually opening the doors involves several steps, all of which need to be monitored with painstaking detail. There’s
negotiating and signing the lease; hiring
a legal counsel; selecting architects,
engineers and contractors; due-diligence
concerns; and installation projects —
just to name a few.
“When you’re in the process of moving
into a new location, you have to choose
the right team,” says Brandon K. Mann,
senior vice president of Colliers
Corporate Solutions in St. Louis. “You
want to be sure that every player has
your best interests in mind every step of
the way. No matter what you’re looking
for — broker, architect, general contractor, etc. — you have to find the one that
best fits your needs. There is no onesize-fits-all solution.”
Smart Business spoke with Mann
about the process of getting your doors
open, what to look for along the way,
and the benefits and drawbacks of a
complete turnkey solution.
What does a company need to think about
once it finds a location?
First, you need a real estate broker to
wade through the paperwork of the
lease, negotiate the terms and get the
deal signed. But, the broker typically
doesn’t have full responsibility for the
lease, so you need a legal counsel to
review everything. You need to be sure
your legal counsel has a good feel for
commercial leasing, so this may or may
not be your normal business attorney.
On top of that, you need to know how
the space should be laid out, what
improvements are needed and what architectural and engineering elements
are involved. You then have to go
through the process of finding the proper architects, engineers, general contractors, installers and movers. The key here
is finding the appropriate ones who are
best equipped to deliver the space.
Oftentimes a broker and a project manager
handle the entire turnkey process. Is this
always the best route to take?
If you have a broker and a project manager who are integrated, experienced
and work together on the same page
with the same goal, you’ll get a holistic
solution. However, typically a broker
just handles the front end [lease execution], and the project manager handles
the back end [everything after the lease
is completed]. This is where having a
complete turnkey provider can be beneficial. This way you have one account or
relationship manager who oversees
every aspect of the process, from selection of brokers and attorneys to getting
your systems installed and moved in.
What are the benefits/drawbacks of having
an all-in-one solution?
In the beginning, the selection of players is key. You need a broker who has
your fiduciary interests in mind, and one
who has experience in the type of space
and location you’re looking at. You need
the proper architects, engineers and
contractors who know what you want
and how to deliver it to you. Having the
right people in place every step of the
way will help you ensure that problems
are quickly spotted and resolved. Having
that alignment is a clear benefit, and you
know you’re covered every step of the
way. Plus, you’ll generally see cost savings in every step, and you’ll usually get
your doors opened faster.
The drawback of an all-in-one solution
is if your provider is all talk. He or she
may talk about turnkey solutions and
promise big results but, at the end of the
day, they’re just passing stuff off internally and things aren’t getting done. You
need to know that your turnkey provider
is focused on you and on your needs
every step of the way.
What pitfalls should companies look for
during turnkey processes?
Dealing directly with landlords and
not being represented on the buyer or
tenant side is something to avoid.
Executing or negotiating a lease without knowledge of pre-existing conditions is another. You have to know what
you’re getting into, what needs to be
done and how it’s all going to get done.
One of the biggest pitfalls I’ve seen is a
company settling on what seemed to be
a good estimate for services, only to get
nickeled and dimed to death by change
orders and additions. <<
BRANDON K. MANN is the senior vice president of Colliers Corporate Solutions in St. Louis. Reach him at (314) 392-2777 or
[email protected].