There are some things you just do not do without professional help, and attempting to find new office quarters without the advice of a commercial agent, usually a chartered surveyor, is one of them.
After staff costs, property costs are most likely to be a company's next largest outlay. Property is usually acquired on a long-term basis. So mistakes can affect a firm's financial well being and strategic options for years.
The agent's role is far wider than simply locating alternative premises. Many agencies are able to look at a company's entire operation, business plan and goals - and make suggestions for locations based on factors including labour supply, communications, cultural and academic links, quality of life and availability of a range of staff housing.
Looked at against the total costs of a lease over the length of its term, or the purchase price of a freehold building, professional agency fees are not large; looked at compared with the costs of making a move to the wrong building, or even to the right building on the wrong terms, they are very small indeed.
Ultimately, of course, the agent's role is to use his market knowledge and negotiating skills to obtain the best possible financial and lease terms on behalf of clients.
However, they provide other important services which include:
- Analysis of an organisation's existing portfolio and lease commitments
- Advising on various options for achieving a company's space requirement; and the implications of various approaches. For instance, in some cases objectives
- could be achieved within a firm's existing portfolio; in other cases by disposing of existing premises and relocating - or even a combination of both.
- Besides market knowledge and a wide network of contacts agents also maintain extensive data bases - helpful in matching available properties to occupier's needs.
- Assessment of short-listed properties in terms of practical and financial considerations including lease terms and future ease of disposing of the building.
- Guide firms through the relocation process. Advise on the appointment of other professionals as necessary - some of whom may be available within their own firm.
- Checking the measurement of the chosen property using the Royal Institution of Chartered Surveyors rules of measuring practice to ensure the tenant or buyer is getting what it is paying for.
- Assisting to ensure that the legal documentation is completed within the planned timetable.
Clearly the best advice will be obtained from a firm with an office agency that specialises in the areas of search and relocation. Fee arrangements should be structured to provide a greater reward for the agent - the better deal he negotiates on your behalf.