During this holiday season, don’t forget to add these key ingredients to your commercial real estate strategy recipe.
Whether you lease or own, real estate is one of the largest controllable expenses impacting businesses. As a result, real estate is often treated as an expense to be minimized, rather than an asset that can support and leverage businesses.
However, taking a strategic approach can control business costs, increase productivity, and improve business performance.
Key ingredients often overlooked when managing commercial real estate strategy include:
- Aligned Business Strategy – Make real estate decisions that align and advance your overall business strategy. You can gain significant operational, financial, and marketing advantages by taking a strategic approach.
- Market Knowledge – Understanding the market and using that knowledge is key to a successful real estate strategy.
- Total Cost of Occupancy – Total Cost of Occupancy shows all the underlying costs of real estate instead of just relying on Direct Cost. Total Cost of Occupancy allows you to make a more informed decision on your real estate.
- The Buy vs. Lease Decision – There can be a wrong decision in buying verses leasing. It’s important to understand the trade-offs experienced with each decision, and then go with the one that best fits your strategy and investment goals.
- Using Capital – Decisions you make about cash and capital will have an impact on your business results and its future. Make good decisions and your business will grow. Make unproductive decisions and your business will become unstable.
As with creating a good recipe, real estate strategy takes planning and time. Real estate decisions are complex and risky and will directly affect your business and its future. Consider hiring a commercial real estate advisor who firmly understands the opportunities and risks associated with real estate.
Learn more about how Verity Commercial can help you and other common overlooked real estate strategies.