Original article posted in Inside Tucson Business here.
Many elements affect when you can move into new commercial real estate space. Here’s a schedule to keep you on task.
Ready to relocate your business to Tucson or elsewhere? You should begin your relocation efforts four to eight months before your move date.
By planning well in advance, time will be your ally, not your enemy, as you search for and secure a commercial real estate lease for your office, retail or industrial use.
Retain a tenant representative early on. This commercial property expert will help you stay on track and advise you every step of the way toward your new location.
You’ll want to start with a clear timeline of your leasing process. This will help you to accomplish all of your objectives in the right order and on time.
- Develop a complete definition of your requirements. This could include meeting with all managers, department heads and your architect.
- Interview and retain a broker.
- Survey the market to locate available properties that meet your requirements.
- Conduct inspection tours of the most desirable properties.
- Make preliminary proposals and open negotiations.
- Start the space-planning process, allowing one to two weeks to turn around plans. Cost estimates can take up to another two weeks.
- Review responses to your proposals.
- Evaluate counter-offers.
- Review space plans and cost estimates.
- Reach an economic agreement.
- Complete space planning.
- Start review of the legal documentation, which can take two weeks or more.
- Negotiate your lease contract.
- If all has gone smoothly, you could find yourself at the point of signing a lease.
- Develop working drawings for your tenant improvements, based upon previous iterations of your space plan. Allow two to three weeks to complete these plans.
- Obtain permits and any required engineering. This can take from two to six weeks or longer, depending on the various approvals required.
- Some owners will start construction when they apply for permits to expedite the occupancy.
- Depending on the size of the job, physical construction can take eight to 12 weeks.
Beyond Week 26
- Relocate your business. You should allow 19 to 26 weeks for relocating.
In a Pinch
If time is short, you can make some short cuts to the timeline, but they may add cost to your effort.
Other alternatives include
- limiting your choices to buildings with space that comes very close to your needs
- making only minor alterations.
- looking for sublease space meeting your requirements.
If you wait too long and time becomes an issue in your relocation process, keep cool. Most economic concessions are made right before the transaction deadline.
Avoid telegraphing your need to close quickly to a potential landlord. This could affect your negotiations for the best lease possible.
Rather than reveal you are under time pressure, attempt to work out alternative solutions with your existing landlord to buy you more time.
Commercial Real Estate Group of Tucson knows plenty of strategies to make your relocation process smooth and cost-effective. Contact the tenant representation company to learn more.
Commercial Real Estate Group of Tucson specializes in representing tenants and corporate users across the United States, Latin America, Europe and Asia as a member of ITRA. For more information call 520-299-3400.