As you requested, some valuable Lease Intelligence

Published: Tue, 12/10/13

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Lease Intelligence

Building Image Really Does Affect Your Bottom Line

Tenants often struggle with the building image factor of site selection, whether the site is retail, office, or industrial.  While a good agent who has taken the time to really understand the client's business will give good advice, it is crucial to help the tenant see the logical answer for themselves.  And the determination of how much weight to put on curb appeal is indeed logical, not emotional as you might think.  

Building image impacts the public's perception of the business located within.  If the desired perception of your business is sophistication, class, and quality of goods or services, then tired, second-rate properties must be passed over.  Chances are, the price point of your goods and services are higher, justifying the higher rent commanded by the building.   If the desired perception is value and/or convenience, then the "B" or even "C" class buildings might be perfectly suitable for your business, given the owner maintains base standards of cleanliness, maintenance, and safety.  These base standards must never be violated.  A good real estate advisor will keep his or her clients mindful of this.

A often overlooked consideration  is the impact building image has on employee morale.  Your place of business is the visualization of your company culture.  Think about the critical talent you need to retain when you make the decision where you are going to hang your shingle.

Warehousing and distribution tenants address the very same concerns.  If the commodity is food products, better building image (and the higher level of building and common area maintenance that usually accompanies them) are extremely important.  If the commodity is recycled materials or galvanized pipe, then image could move down in priority below other considerations, such as truck ingress and egress and loading dock door dimensions, for example. 

There are many options in any given market.  Choose wisely...and logically.



Do you have your own lease challenges that you would like to discuss?  Feel free to call me directly or send me an email.

Aaron Weiner, CCIM, CPM, LEED AP | aaron@bailesre.com | Direct: (310) 445-4303