How can you mitigate risks when selecting a site for Corporate Real Estate?

1 Assess your needs

Before you start looking for potential sites, you need to assess your current and future needs for space, location, and amenities. You need to consider your business goals, growth plans, budget, and culture. You also need to involve your key stakeholders, such as senior management, employees, customers, and suppliers, in the process. They can provide valuable insights and feedback on what they expect and prefer from a CRE site. By defining your needs clearly, you can narrow down your options and avoid wasting time and resources on unsuitable sites.

2 Analyze the market

Once you have a clear idea of what you need, you need to analyze the market conditions and trends in the areas where you are interested in locating your CRE site. You need to gather and compare data on factors such as supply and demand, vacancy and occupancy rates, rental and sale prices, incentives and taxes, infrastructure and transportation, demographics and labor pool, and competition and opportunities. You also need to forecast how these factors will change over time and how they will affect your CRE site's value and performance. By analyzing the market, you can identify the best locations and deals for your CRE site.

3 Evaluate the risks

After you have identified some potential sites, you need to evaluate the risks associated with each one. You need to conduct a thorough due diligence process that covers legal, financial, technical, environmental, and social aspects. You need to check for any issues or liabilities that could affect your CRE site's ownership, use, or development. You also need to assess the potential impact of external factors, such as natural disasters, political instability, social unrest, or regulatory changes, on your CRE site's operations and security. By evaluating the risks, you can avoid or minimize any negative consequences or losses for your CRE site.

4 Negotiate the terms

When you have selected your preferred site, you need to negotiate the terms and conditions of the deal with the seller or landlord. You need to ensure that the deal aligns with your needs, budget, and expectations. You also need to protect your interests and rights by including clauses that address issues such as contingencies, warranties, indemnities, escrow, termination, and dispute resolution. You also need to consult with your legal and financial advisors to review and finalize the contract. By negotiating the terms, you can secure a favorable and fair deal for your CRE site.

5 Plan the transition

Finally, you need to plan the transition from your current site to your new CRE site. You need to coordinate with your internal and external teams, such as IT, HR, facilities, movers, and contractors, to ensure a smooth and timely relocation. You also need to communicate with your stakeholders, such as employees, customers, and suppliers, to inform them of the change and address any concerns or questions. You also need to monitor and evaluate the transition process and make any adjustments or improvements as needed. By planning the transition, you can reduce the disruption and stress for your business and stakeholders.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?