OFFICE RELOCATION-More involved than most anticipate

Commercial Property Network, Inc. Princeton www.cpnrealestate.com

We are a Princeton-based commercial real estate brokerage and advisory firm. We have been active since 1981 and have been directly involved in over $400 million in transactions from 1000/SF on up. This background has taught us to stay ahead of the curve.

It is rare that firms seeking to relocate to smaller or larger space, give themselves enough time to keep the process to their advantage, and enough time to fully address the aspects involved.

Under most circumstances, any space will need renovations. This process alone, can take 45-60 days to do the work, plus an additional 30-60 days for town permits and renovations, along with time needed to develop an interior plan, and then convert that into a formal architectural plan suitable for Township review and approval. While the Landlords typically fund and process these steps, THESE STEPS ALONE, can easily require 4-5 months before the site has been selected. Add to this, the time to determine general goals, review total market alternatives, inspect primary sites, develop a short list for proposal, eventual site negotiation and final lease negotiation. This piece alone can take 1-3 months, depending on the focus of all parties involved.

BE EARLY IN THIS PROCESS. You should typically allocate 8-10 months prior to lease expiration.

Most tenant leases have a renewal option provision, typically 6-12 months PRIOR TO, the actual lease expiration. This clause usually allows a tenant to accept the renewal terms as drafted. However, these terms may not be consistent with market, or, your needs may have changed, OR, there just may be a better opportunity for you.

It is advised that prior to giving that notice, you as a tenant confirm what terms you would want, what alternatives and values are available in the market, and what your overall options are to consider. This alone suggests you should be evaluating your size, design, budget and growth needs prior to that notice date. Keep the ball in your court, maintain control and use your options to your advantage.

At Commercial Property Network, we seek to advise clients of the timing involved, decision aspects to consider and how to use time to their advantage. At no cost obligation, we suggest a review of all lease agreements and amendments, to confirm critical timelines and options available. In some instances, we propose an early renewal in exchange for rent reductions or fit out allowance for sprucing up the space. Much like your accountant, legal and other financial advisors, our goal is to be involved as early as possible.

Let's face it. Moving is a pain. Time, resources and other considerations need to be considered. Getting this situation dealt with early, allows for the best chance to improve your position, or at least maintain your options. Give us a call, no cost or obligation. Discuss your best-case scenario. Let us review your lease and compare that to viable market options. Commercial Property Network: We Have a Place For Your Company.