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COMMERCIAL REAL ESTATE LIABILITY & RESPONSIBILITY

COMMERCIAL REAL ESTATE LIABILITY & RESPONSIBILITY

Correctly made Commercial Real Estate Decisions

If your enterprise is like most companies, your commercial office rent plays a role as the second largest business expense to the company, which directly affects your bottom-line.  As the CEO of GolfTEC Southern California, back in the earl 2000’s, I experienced this exposure personally with a $70,000-monthly-base rent expense spread over the fifteen leased locations. Note: I am not counting other triple net expenses in this amount; just base rent alone. As you may know, paying large rents can be very painful. And, often untimely when it comes to managing cash flow.  My perspective on the liability of leased space really changed as every month when I wrote those checks. I have experienced the pain you feel as a business owner, when it comes to balancing revenue and expenditures. As a lessee myself, this impact hit me very differently than when I had prior acted as a tenant broker who would ask my clients to sign multimillion-dollar leases. I quickly realized that rent paid must provide value to the company far beyond the cost of the space. If not, don’t lease the space, alternatively take actions to get value from this painful monthly reoccurring expense.

Correctly-made real estate decisions will provide that extra economic value. They can help propel a company past its competitors and increase profitability. We do this by negotiating below market leases, with facilities that maximize productivity, providing a great work environment to retain employees, and examining square footage reduction by using alternative workplace strategies.

If you find yourself entering a negotiation with your commercial landlord on any level, please contact me.

Forrest Blake | Senior Vice President

SVN | Commercial – DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

 

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