Project preparation

Unlike domestic transactions, where only one agent is involved, in the commercial property market there is usually a commercial agent on each side – one acting for the seller or landlord; and another acting for the buyer or tenant. It is only large organisations that have qualified people in-house who may choose not to appoint a commercial agent. You may not need one for a very simple transaction such as taking a serviced office suite but if you are at all inexperienced, consult a commercial agent.

A commercial agent will cover many activities. He or she will research the market where you are looking and provide an overview on availability, price etc. The agent will consider the property market in relation to the economy, giving you the information you need to decide what type of lease to enter into, or whether to buy a property. The commercial agent will give you information on new developments and second-hand buildings. By looking at recent transactions and trends you will be given an indicator as to lease terms you should be expected to enter into.

He will also take into consideration your existing lease commitments, such as break clauses, dilapidations etc.

All this information will allow the agent to commence negotiations with the landlord or owner of the building or buildings you are considering. He or she will then consider in detail the Heads of Terms in relation to your needs and ensure that you obtain the best deal possible.

Acquiring space
The process of acquisition will follow the space audit and the formulation of the accommodation strategy. You should by now, know the size, type and location of the premises you need. The combination of all the features you are looking for is called the selection criteria.

You will need to refer back to the selection criteria (checklist #20.1) again and again, so take time to put them into a document that can be referred to throughout the acquisition process.

To revisit this checklist, use the below link to ’If you need to move - decide on the criteria for new offices’ or to the checklist item itself. To return to this action, simply use the ‘back’ button in your browser.

Your commercial agent will first research the market and provide you with an overview of the properties that may be available and at what price. He will also circulate details of your requirement to commercial agents who may be acting for clients with properties that meet your selection criteria.

Offices must be regarded as a commodity, a tool to aid your business objectives
In a way, offices can be selected in the same way as any other piece of office equipment. Each office has its own characteristics that are unique. Some features will be relevant to your business, some will not, just like a photocopier or computer. There will be some aspects which are indispensable, such as the way the office will accommodate the right number of people, or the right services. There will be others that are entirely irrelevant or totally wrong, such as strong rooms for a firm that does not hold valuable items, or an impressive atrium, for a company that wants to project a low-key corporate image.

Don’t forget that all the features of any building will be sold to you as if they would be of advantage. It is your responsibility to make sure that these features would really be of advantage to your business – i.e. that they would be of benefit. Your commercial agent will then prepare a long list of properties he thinks may be worth seeing.

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