Leasing Office Space – Part 4 of 23 Selecting a Location

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Selecting a Location:

Office space location issues can include proximity to existing and potential employees, clients, vendors, and various third parties. For companies with less than 100 employees, the primary criteria for selecting a location is typically proximity to the chief executive officer's residence. As a company grows, office relocations also consider where both existing and prospective employees live.

If a company moves 20 or 30 miles from its current location within a metropolitan area, some employees may decide to the additional commute is not worthwhile. If the company moves to another metropolitan area, it will likely lose many of the lower to middle level employees and a portion of the senior management.

Employee Home Locations:

The home location for prospective employees must also be considered. If a company has 10 employees, it probably works fine to have an office on the fringe of the metropolitan area.

However, a company with hundreds or thousands of employees must consider drawing its staff from a larger geographic base than is reachable from the fringe of the metropolitan area. For example, if your company is on the southern fringe of a large metropolitan area, prospective employees on the northern fringe would be reluctant to make the commute.

Many tenant rep brokers have a tool to evaluate the centric location of all employees. The home address of all employees is entered into a database. The computer algorithm calculates the centric location.

Appearance and Location Appropriate for Clients:

For some companies, office space must be selected based on a location convenient to clients and an appearance that is appropriate for clients. For many businesses, clients rarely visit the office. If they do need to visit the office, they do not expect it to be convenient and luxurious.

In this situation, most companies elect to choose office space which is low to moderate in price. Conversely, clients of some firms expect the location to be convenient and the office space to be impressive. Large law firms and trust companies fit this category.

The Market Research and Consulting division of O'Connor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses - multifamily, office, retail and industrial.

This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance. In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.

This capacity to research, analyze and interpret market trends and the impact of specific transactions is a major reason for why developers and acquisition experts rely on O'Connor & Associates for market research, cost segregation, market studies, feasibility studies, rent studies, tax credit studies, project design guidance, property performance evaluation and lease audits. O'Connor & Associates is an acknowledged source of trends in real estate investing and market activity.

Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also a registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction. For more information please www.poconnor.com today!

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