!["When a landlord quotes a rent, there
are many things embedded in it,
including tenant improvement [TI]
dollars. But unless you know to ask for
it, it has no value."
Maximize Tenant Improvement Dollars](https://image.slidesharecdn.com/3culturesinsexecutivebriefing-160716173000/85/The-3-Sins-of-Office-Space-and-Culture-27-320.jpg)
The 3 Sins of Office Space and Culture
- 1. Jeremy Schmitt Real Estate Consultant Jeremy@howardecker.com The 3 Deadly Mistakes of Office Space + Culture
- 2. Your Culture Is Your Brand -Tony Hsieh, CEO of Zappos
- 4. Does Your Office Space Empower Your Culture?
- 7. The 3 Mistakes of Office Space + Culture
- 8. 1. Thinking Of Space Solely as Cost Per Square Foot
- 10. Privacy does not compromise collaboration. By improving privacy - where employees can focus - you enrich and strengthen collaborative activities. Open space vs. Closed space *Harvard Business Review
- 11. The sweet spot is a space plan that we call social seating, or working in a neighborhood.
- 12. Space designs that encourage "collisions" between workers fosters better communication + innovation. Team Collisions *Harvard Business Review
- 14. What Common Values Do You Want Expressed Through Your Space?
- 15. 2. Not Prioritizing Flexibility
- 16. The growth curve for a business is rarely set in stone.
- 17. Knowing your options for increasing or decreasing the amount of space as your business changes. What is Flexibility?
- 18. What is more flexible: A long-term or short-term lease?
- 20. Social Areas Private Workstations Work-Life Balance vs. Work-Life Integration
- 21. 3. Not Hedging Potential Risk
- 22. Building Risk Market Risk Business Risk
- 23. The risk that a change to the buildings ownership or infrastructure impacts your occupancy. Building Risk
- 24. Events in the global marketplace that impact the rent tenants you pay. Market Risk
- 25. Understand early termination and renewal options How To Hedge Market Risk
- 26. The inherent risks within your business that impact your business operations. Business Risk
- 27. "When a landlord quotes a rent, there are many things embedded in it, including tenant improvement [TI] dollars. But unless you know to ask for it, it has no value." Maximize Tenant Improvement Dollars
- 29. Is your culture & brand reflected in your space? Are you hedging the ALL potential risk? Wrap Up
- 30. Howard Ecker + Company
- 31. Jeremy Schmitt Real Estate Consultant (815) 560-7351 Jeremy@howardecker.com Q/A
- 33. Students achieved 25% higher grades on standardized tests Office workers performed 10-25% better on tests of mental function and memory recall (Lower panel heights and elevated furniture. Glass architectural walls, Lighter colors and surface treatments to reflect light and maximize natural light) Daylight increases Productivity
- 35. Experience is a fine thing. As you seek out the best partner for helping you find your next office, you should consider more than just how long theyve been around. What you want to look for are things like client retention, glowing testimonials and business growth. Ask prospective tenant reps if they can put you in touch with a couple of companies theyve worked with in the past. Ask those companies to give you an honest assessment of what theyre like. Expertise Counts
- 36. Less-transparent work space can yield more-transparent employees. By balancing transparency and privacy, organizations can encourage just the right amount of "deviance" to foster innovative behavior and boost productivity Employee Transparency *Harvard Business Review
- 37. Typical Timeline
- 38. Typical Timeline
- 39. Employees can tote laptops and work on a breezy rooftop garden, or sprawled on a sofa in a cozy living room. in London
- 40. 1. Be Ready, Willing and Able to Walk Away The biggest mistake many tenants make is not developing legitimate alternatives to their first choice, whether a new space or a lease renewal. If a landlord believes youre not willing to switch to a different property, you lose your negotiating leverage. 6 Key Points To Negotiating Your Office Lease
- 41. 2. Start the Process Early Time should be your ally, not your enemy during negotiations. Landlords know that the managers of other buildings can take six to eight months to create a space plan, get construction pricing, agree on a rental rate, prepare a lease document and ready the space for occupancy. If you wait too long before asking for a renewal proposal, youre telling the landlord that youre not considering any other options. 6 Key Points To Negotiating Your Office Lease
- 42. 3. Know the Whole Picture Before You Start Negotiations Is the building being sold? Is the largest tenant moving out? How much free rent did the last tenant get? Does the building have HVAC or parking problems? What is the landlords financial situation? Candid, complete answers may not be forthcoming from the landlord or his broker. Expert research can make sure that what you dont know wont hurt you. 6 Key Points To Negotiating Your Office Lease
- 43. 4. Make Landlords Compete For Your Business The key to a successful negotiation is creating competition between your current landlord and other landlords in the area. You should have an experienced advisor providing the proper market research, lease comparables and the negotiating skill to use that information to create leverage for you. 6 Key Points To Negotiating Your Office Lease
- 44. 5. Hiring A Tenants Rep Doesnt Cost You More Money, But It Can Save You Money Occasionally a landlord will try to save you some money by discouraging you from engaging a tenant representative. Dont be fooled. He knows that without a tenant representative youre more likely to be in the dark about market rates and terms, and less likely to shop the market, or consider other alternatives. That means more money in the landlords pocket. An experienced tenant representative will help ensure that you receive the best possible rates, terms, incentives and lease clause protections. Remember, the landlords representative negotiates leases every day; you may do it once every 3 to 4 years! 6 Key Points To Negotiating Your Office Lease
- 45. 6. Make Sure You Are Comparing Apples To Apples Business owners who are not experienced with commercial real estate often find it difficult to perform a true apples to apples comparison of different facility choices. Lease terms such as full service gross, modified gross, triple net, tenant improvement allowances, rental abatement, escalations, base years, operating expense stops and loss and load factors can obscure the true amount youre paying and make legitimate comparisons 6 Key Points To Negotiating Your Office Lease
- 46. As a business owner, one of the most important things you learn is that the people you hire become the face of your company. In order for your people, and, in turn, your company to reach their fullest potential, it is worth taking a look at your space and thinking about whether it accommodates and reflects the values of the people working there.
- 47. Companies are always faced with decisions about how to maximize success, and inevitably, the answer will sometimes be to compromise. But while it might seem that spending less on an office space will be better for your bottom line, realize that the tradeoff may very well be the quality of talent you hire and retain. -Howard Ecker