These days most organisations are aware of the role that property plays in supporting their business. However, a common mistake occurs when the choice of properties is presented as the final offer, without flexible solutions to address changing business needs. Many businesses believe that what they see is what they get without properly understanding a property’s potential.
The fitout of a workspace is key to understanding the way we use space and how that space should evolve with changing work styles, new people and new technologies. When searching for, selecting and negotiating a new property, the idea that we can tweak that property to suit our purpose seems costly and overwhelming. This may result in forced decisions where the property doesn’t necessarily support a business’s direction.
How can we prevent this problem from occurring in future property searches?
Guidance from property experts whose knowledge extends beyond real estate is fundamental in the search, negotiation and fitout process. Together with a property expert, a real property strategy can be created – one that encompasses the likely changes your organisation will face in the future. It is then necessary to find a property and a fitout that supports such changes. If the fitout does not already exist, it necessary to find a fitout option that can help you achieve this goal.
When BRM was engaged by Real Asset Management (RAM) to conduct a property search we went to market and found some great options but it was our knowledge of fitouts which led us to conduct a proper comparison between these options, resulting in the best outcome for the organisation.
The RAM Group is a global wealth management and advisory firm with offices in Hong Kong, Brisbane, Sydney and Melbourne. When it came to the property search, RAM required a space that would be true to its image while functioning and accommodating for its future direction.
With guidance from BRM, RAM aimed for the preferred option in Melbourne’s iconic Rialto building. However other companies were making offers for the same space so we were forced to consider other options on different levels in the same building. In this part of the property search the multidisciplined skills of BRM’s property team came in handy. The alternative options required various levels of fitout so there were many scenarios to consider. BRM knows fitout so we were able to crunch the numbers and present an accurate finding to the client based on the following considerations:
While all of these factors were crucial to the end decision, it’s important to consider that the relationship between property and fitout can be leveraged to favour either the property or fitout service provider so it’s necessary to partner with trustworthy professionals. Some businesses will be driven towards properties that require full fitouts to give the service provider a larger scope of work.
As part of RAM’s property strategy, BRM ran the numbers on rental vs incentive vs existing fitout on one level of the building and compared them to the numbers of other leases offered on other levels. Everything was done with complete transparency to achieve the best outcome for the client.
A direct lease was secured for the 46th floor and the entire process, from inspection, to negotiation to signed Heads of Agreement took 2-4 weeks, with the lease following efficiently afterwards. The next stage of the property process, the design phase, was taken over by BRMs design team who worked within the limitations of the existing fitout to create a clean and sophisticated space that was sympathetic to the building’s design while strongly reflecting RAM’s image.
RAM’s property project exemplifies the need to choose the right professionals when creating and implementing a property strategy for your business. The limitations, costs and opportunities of a fitout could certainly influence the choice of properties for your business. Rather than simply accepting what’s on offer, your business must be prepared to create the kind of space that articulates its needs and reflects the changes it will go through.
Is your company facing significant growth or other types of change? Contact BRM for a chat about your current position.
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