Market Intelligence
Lease Leverage
Understanding the value of your lease to building owners is crucial for business owners to understand
December 13, 2019
To building owners a lease is no different than a purchase order to a business. Both represent cash flow in the form of payment in exchange for something. Just as a manufacturing business makes investments in equipment to increase profitability, building owners make investments in their tenant's space to do the same. Building owners understand if their building helps their tenant's business, their tenant (cash flow) will be successful (stay in business) and not leave.
As a business owner you may ask how does this apply to my business. Below are two examples of businesses where their building and location are absolutely critical...
- Manufacturing: This begins with the location and configuration of the building or space to support efficiencies in production and logistics. This ends with creating an environment that shows your customers your first class in every way.
- Professional services: This is all about people, the better people so talent attraction and retention is critical to these businesses. Every employee desires a good environment, convenience, safety, and amenities. Businesses that understand this attract good people and make them never want to leave. Customers and clients clearly see this and the brand equity created is invaluable.
Building owners understand this and will invest in your location and building to help your business achieve higher profitability.
If a business would like a building owner to invest in their building or space, they will need to present a business case that clearly defines their needs, how their needs improve the building asset and the lease terms willing your willing offer.
We can help you think through this by providing a comprehensive analysis at no cost.