Optimize your costs by lowering occupancy expenditures!
In most businesses, real estate is typically the largest expense, second to payroll. Reducing them can create an immediate and dramatic increase in profitability. As the economy contracts, companies both on the international and local level are taking an aggresive approach to reducing this costs.
This is important for 3 main reasons:
- With the sharp decline in real estate values over the past 6 months, most tenants are over-paying for their real estate. They are unaware of the options available for reducing their occupancy costs in line with today's market values.
- As company continue to reduce staff, most are occupying too much space for their needs.
- Even the smallest reduction in overhead can mean the difference between a business's survival or failure during this recession.
Outsourcing corporate real estate management to a professional real estate consultant is recommended!
This will ensure that occupancy costs are kept to a minimum and that the corporate real estate remains efficiently aligned with the business plan. The cost of hiring a real estate broker is minimal and often pays for itself many times over. Now more than ever, businesses are presented with numerous options for reducing their occupancy costs. This is thanks to the soft commercial real estate market and landlords' consequent willingness to listen to their tenants, and negotiate mutually beneficial financial solutions for both landlord and tenant.
There are several ways to reduce your occupancy costs and potentially control these expenses over the long term. These include:
- Lease Audit
- Disposition of surplus space by sublease
- Early lease renewal to reduce rent and operating expenses to fair market value or below
- Lease renegotiation to reduce total occupancy costs to an affordable amount
- Lease termination/buy-out and relocation
If you want to know more, don't hesitate to contact us!
