Expansion and Growth Plans for Emerging Companies

 

Your company is young, dynamic and thriving. Trying to create a blueprint for growth, and your future real estate needs, can be a difficult task. You need to be flexible: The space you’re in today may not suit unexpected future growth, and you don’t want to be locked into a space that can’t be part of your future.

Plan for Growth Your future needs may also be unique. While some companies may just need more office space, yours may need research labs or manufacturing areas.  As you look to the future, you need to be as clear as possible about where your company is going and what growth and expansion may require.

 

Assistance an expert provides  When you begin looking at possible spaces, you’ll want to rely on an expert has the experience to help you find the best choices of space, negotiate the right lease agreement with expansion options or termination clauses and help you identify government incentives and other ways to subsidize your costs.

 

Best options to accommodate growth.  Make sure potential landlords understand the nature of your business, and the possibility of volatile, near-term growth. Some landlords will be willing to consider short term leases, especially if they understand your company’s potential. Others may have a large variety of inventory in your area. That could make it easier when you do need to expand your operations because you already have an established relationship with the landlord.

Five Cost Saving Tips When Exercising Renewal Options.

1. Always approach a renewal option as though it were a totally new transaction.

2. Solicit competitive proposals  from neighboring buildings six months prior to the notification date for the renewal option.

3. A more competitive rate may be available if an attempt is made to renegotiate a lease with the existing landlord instead of simply renewing or exercising an option.

4. The current landlord should be given an opportunity to compete with the other offers received. Begin the process early enough so the landlord knows there is enough time to move if they won’t match or beat other offers.

5. By following these guidelines you will be able to determine whether the proposed renewal option rate is truly at fair market value.

Three Keys to Moving Your Business

The challenges of operating a business of any kind are magnified when it comes time to move to a new space. Whatever the reason for the move, the process can be difficult and stressful if you’re not prepared. But, there are some steps you can take that will make a move much easier for everyone involved. Our three keys are Knowledge, Organization and Communication.

Knowledge

When you first start contemplating a change of locations, you’ll want to be sure you are aware of the extent and ramifications of your decisions. Choosing the best geographic location based on both highway access and convenience for existing and new employees can affect your growth going forward. If you’re not familiar with various lease options, you’ll want to consult a real estate professional. A mistake at this point can be tragic in the long-term. Be sure you are clear about all the costs involved with moving to a new space, including things like taxes, utilities, management fees, and new furniture and equipment, as well as obligations to your old landlord.

Organization

Having a comprehensive plan written out and reviewed is a key to a successful move.  Don’t underestimate the time necessary to plan and prepare for a move. Reviewing your plan with your employees can help discover problems before they arise. And it serves as a blueprint that everyone can refer to during the process to keep things on track.

Your plan needs to take into consideration all the steps necessary before, during and after the move. Your goal is to make the transition to the new space as seamless as possible, avoiding as much as possible interruptions in your actual business.

Communication

This is perhaps the most important aspect of making a move as easy as possible. You simply have to make sure everyone, from employees to vendors to your new landlord, are all on the same page.  You’ve spent the time and energy developing a Move Plan, but that won’t do you any good at all if everyone isn’t aware of what they need and want to know. Solid communication with vendors and customers will mean they’ll be ready to shift to your new location without a hitch. Keeping your employees advised every step of the way will help ease the stress that comes naturally with a big change like this. The more they know, the more comfortable they’ll be with the move.

Managing Change

Organizing and supervising a move is time intensive, and that’s something you need to consider carefully. If you can’t afford the time necessary, you should consider bringing on an expert project manager to handle all of the details while you focus on your business. And as an experienced broker, I can help you as well. Just give me a call at 908-377-9004 and we’ll get started today.

Jeanne Rothenberg, CCIM
Vice President
NAI DiLeo-Bram & Co.
Cell: (908) 377-9004
Office: (732) 985-3856
http://www.commercialrebroker.com/
jrothenberg@naidileobram.com

Available Laboratory Space in New Jersey

June 2013 Inventory of Existing Available Laboratory Space in New Jersey. The spaces listed below represent a sample of existing lab space. Several locations can be occupied immediately at a great reduction in price. Some include equipment and furniture. Rents are negotiable and free rent may be offered. The units may be divisible. There are also many existing buildings available for companies wishing to implement their own design.

Branchburg- 15,000 sf vivarium & office space

Bridgewater-+15,000-100,000 sf  chemistry lab & vivarium

Boonton-10-20,000 sf lab

Cranbury – 2000 -265,000 sf chemical and biology labs with vivarium

East Windsor – 5,000-180,000 sf R&D,

Ewing – 18-25,000 sf chemistry & biology labs

Fairlawn-11-26,000 Pilot manufacturing labs & GMP

Franklin Township -80,000– 133,686 sf- research & testing lab space

Little Falls- 40,000 sf solid oral dosage facility

Monmouth Junction – 500-378,000 sf completely equipped labs with vivarium

Morris Plains –11,000 sf – 40,000 sf chemistry labs

Montvale – 45,000 sf chemistry labs

New Providence-30,000-100,000 sf space available for labs

New Brunswick –2000-60,000 sf chemistry and biology labs

North Brunswick- 7,000-30,000 sf brand new lab space

Oakland-26,000 sf lab

Piscataway -15,000-40,000 sf chemistry lab

Princeton- 3,800-30,000 sf R & D

Ramsey-37,000 sf vivarium & chemistry labs

Warren-15,000-34,000 sf of chemistry labs

Please call for more information. Jeanne Sabo Rothenberg, CCIM Vice President NAI Dileo Bram 908-377-9004 Jrothenberg@naidileobram.com

8 Cost Saving Strategies for Life Science Companies to Consider When Designing New Space

1. Choose cost effective building systems. Due to the high monthly expense to operate a lab it is critical to consider both the initial outlay for the system as well as the ongoing charge for utilities when making your selection.

2. Select the right architect. Focus on your budget as well as needs when choosing. Large firms are not necessarily your best choice. Small architectural firms may be more responsive and cost effective.

3. Design for the future when planning for your growth. Taking on expansion space too soon will incur additional overhead. Control contiguous expansion space by either negotiating options or paying a percentage of rent to reserve expansion space.

4. Consider future costs when leasing existing space. Existing labs build outs may be cheaper to lease but can also be at the end of their useful life. All building systems should be thoroughly inspected prior to occupancy. It is also important to budget for any possible future repairs.

5. Do not convert office space as it compromises air quality. General office HVAC systems have not been designed with laboratory use in mind and will be compromised by adding fume hoods. Improper ventilation can cause stuffiness and poor air quality for employees.

6. A backup generator is critical to prevent loss of science. A power failure can destroy many months of hard work developing a cell or molecule. A generator can be sized for the minimum necessary to operate critical equipment.

7. Lab build outs are very specialized. Due to the high expense of building a lab and the anticipated long term use it is important to have experienced vendors and specific materials to withstand both spillage and heavy continuous operation of building systems.

8. Most importantly, select a team of experts to avoid costly mistakes. Scientists will be well served with a team of advisors to aid in efficient use of their investors’ dollars.

For an individual assessment of your needs, please call me for a free consult at 908-377-9004.

Jeanne Sabo Rothenberg, CCIM
Vice President
Nai Dileo-Bram & Co.

Inventory of Existing Lab Space in New Jersey

December 2012 Inventory of Existing Available Laboratory Space in New Jersey. The spaces listed below represent a sample of existing lab space. Several locations can be occupied immediately at a great reduction in price. Some include equipment and furniture. Rents are negotiable and free rent may be offered. The units may be divisible. There are also many existing buildings available for companies wishing to implement their own design.

Branchburg- 15,000 sf vivarium & office space

Bridgewater-+150,000 sf solid dosage facility, vivarium, office space
Boonton-10-20,000 sf lab
Cranbury – 2000 -265,000 sf chemical and biology labs with vivarium
East Windsor – 5,000-180,000 sf R&D,
Ewing – 18-25,000 sf chemistry & biology labs
Fairlawn-11-26,000 Pilot manufacturing labs & GMP
Franklin Township -21,000– 133,686 sf- research & testing lab space
Little Falls- 40,000 sf solid oral dosage facility
Monmouth Junction – 500-378,000 sf completely equipped labs with vivarium
Morristown –6000 sf – 24,000 sf chemistry labs
Montvale – 45,000 sf chemistry labs

New Brunswick –2000-60,000 sf chemistry and biology labs

New Providence-30,000 sf labs plus office space
North Brunswick- 7066-30,000 sf brand new lab space
Oakland-26,000 sf lab

Piscataway-25,000-7000 sf of analytical and bio labs
Princeton- 3,800-30,000 sf R & D
Ramsey-37,000 sf vivarium & chemistry labs
Teterboro – 5,000-50,000 sf chemistry labs
Totowa – 121,000 sf- solid oral and 61,000 sf GMP
Warren-34,000 sf of chemistry labs

Please call for more information.
Jeanne Sabo Rothenberg, CCIM
Vice President
NAI Dileo Bram
908-377-9004
Jrothenberg@naidileobram.com

 

 

Why Your Landlord Offers Different Rental Rates to Tenants in Your Building

All office buildings offer an asking rental rate to potential tenants making  inquiries for available space. However, a view of the various leases drawn  within the same building may show a wide range of different rental rates charged  to different tenants. There are a variety of considerations which, when  combined, affect a tenant’s annual occupancy cost compared to other neighboring  tenants. Knowing and understanding these variables in advance can assist tenants  in leveraging their strengths throughout the site selection and negotiation  process.

Lease rates are evaluated on an “effective rate” basis. This considers all  the concessions offered to each transaction to compare them equally. These  concessions include base rental rate, free rent and tenant improvement  allowances. When balanced out they are calculated to represent an annual  occupancy cost or average cost per square foot for the lease term. Following are  10 key components which affect rental rates for office tenants.

  1. Negotiating a competitive base rent initially when moving into a building.  Lease rates can typically be structured at 10% below the asking rental  rate.
  2. Tenants may receive as much as one month of free rent per year of term in an  average or weak rental market.
  3. It is important to consider the market conditions when each tenant’s lease  began. Offered rental rates reflect market conditions, which vary from year to  year.
  4. An existing tenant’s lease rate should be the same or lower than the current  asking rental rate in the building unless the existing tenant’s  rental rate includes amortization of extensive improvements.
  5. Tenants must compare leases with similar length of terms for accurate  comparisons. Longer term leases have an additional benefit to the landlord and  may be structured at a lower rate than a shorter term lease.
  6. Creditworthiness of the tenant is also a consideration when structuring  lease rates, tenant improvement allowances and security deposits.
  7. The larger the space the more economical and lower the rent will be per  square foot. Tenant improvement allowances are more cost effective on a larger  unit.
  8. Some annual base rents remain flat for the entire term, while others demand  annual escalations. These escalations can range from annual bumps of 3% or  escalations which are tied to the Consumer Price Index. Base rental rates can  also have a bump of 15% midway in the term. Escalations are all part of the  initial negotiation and can vary.
  9. Tenant may be able to negotiate a cap on annual increases in operating  expenses. This will have a significant impact on the effective rent.
  10. Lease renewals may credit the tenant for already amortized improvements. If  so, the renewal language should be 90-95% of fair market value.

 

During the initial site selection stage and at the time of a lease renewal a  tenant should request proposals from several landlords. This will provide the  tenant with a true understanding of their value in the market place.

Creating competition results in the most economic terms.

Article Source: http://EzineArticles.com/?expert=Jeanne_Sabo_Rothenberg

Article Source: http://EzineArticles.com/7133403

Inventory of Available Lab Space in New Jersey

 

July 2012 Inventory of Existing Available Laboratory Space in New Jersey. The spaces listed below represent existing lab space. Several locations can be occupied immediately at a great reduction in price. Some include equipment and furniture. Rents are negotiable and free rent may be offered. The units may be divisible. There are also many existing buildings available for companies wishing to implement their own design.

Branchburg- 15,000 sf vivarium & office space
Boonton-10-20,000 sf lab
Cranbury – 2000 -265,000 sf chemical and biology labs with vivarium
East Windsor – 5,000-180,000 sf R&D,
Ewing – 18-25,000 sf chemistry & biology labs
Fairlawn-11-26,000 Pilot manufacturing labs & GMP
Franklin Township -21,000– 133,686 sf- research & testing lab space
Little Falls- 40,000 sf solid oral dosage facility
Monmouth Junction – 500-378,000  sf  completely equipped labs with vivarium
Morristown –6000 sf – 24,000 sf chemistry labs
Montvale – 45,000 sf chemistry labs
New Brunswick –2000-60,000 sf chemistry and biology labs
North Brunswick- 7066 sf brand new lab space
Oakland-26,000 sf lab
Princeton- 3,800-30,000 sf R & D
Ramsey-37,000 sf vivarium & chemistry labs
Teterboro – 5,000-50,000 sf chemistry labs
Totowa – 121,000 sf- solid oral and 61,000 sf GMP
Warren-34,000 sf of chemistry labs

Please call for more information.
Jeanne Sabo Rothenberg, CCIM
Vice President
NAI Dileo Bram
908-377-9004
Jrothenberg@naidileobram.com

Lab Space Available in New Jersey

Inventory of Existing Available Laboratory Space in New Jersey. The spaces listed below represent existing lab space. Several locations can be occupied immediately at a great reduction in price. Some include equipment and furniture. Rents are negotiable and free rent may be offered. The units may be divisible. There are also many existing buildings available for companies wishing to implement their own design.

Cranbury – 2000 -265,000 sf chemical and biology labs
East Windsor – 5,000-180,000 sf R&D,
Ewing – 18-25,000 sf chemistry & biology labs
Fairlawn-11-26,000 Pilot manufacturing labs & GMP
Franklin Township -21,000– 133,686 sf- research & testing lab space
Little Falls- 40,000 sf solid oral dosage facility
Monmouth Junction – 54,000 sf (divisible) completely equipped labs
Morristown –6000 sf – 24,000 sf chemistry labs
Montvale – 45,000 sf chemistry labs
New Brunswick –2000-60,000 sf chemistry and biology labs
North Brunswick- 7066 sf brand new lab space
Princeton- 3,800-30,000 sf R & D
Ramsey-37,000 sf vivarium & chemistry labs
Teterboro – 5,000-50,000 sf chemistry labs
Totowa – 121,000 sf- solid oral and 61,000 sf GMP
Warren-34,000 sf of chemistry labs

Please call for more information.
Jeanne Sabo Rothenberg, CCIM
Vice President
NAI Dileo Bram
908-377-9004
Jrothenberg@naidileobram.com

Lease with an Option to Purchase- Top Four Challenges To Consider

When a business owner examines available options to find a space for their business they may consider a property marketed for both lease and sale. Many times a business owner decides they want to purchase the property instead of leasing after realizing that rental payments can go towards paying down a mortgage. They could actually own the property instead of paying rent for 10 + years. They then begin examining the costs involved in the purchase. These include a down payment, attorney’s fees, engineering inspections, title search, insurance and other due diligence expenses. At this point the business owner may have second thoughts and consider the option of leasing. The third scenario considered is to enter into a lease with an option to purchase the property at a specified point in time. Often times a landlord who would prefer a sale but is having difficulty finding a buyer will offer this arrangement in an effort to make the property more attractive to a prospective buyer or tenant. This sounds great in theory, though when the concept begins to be put into practice the tenant and owner of the property may have very different ideas. The tenant expects some portion or all of the rent will be applied to the purchase price. The owner is not as flexible about this concept as the tenant anticipates. The owner also expects the tenant to pay a higher price because of their level of interest in the building.

Following are the top four challenges when entering into a lease with an option to purchase agreement.

1.     Determining how much if any of the rent shall be applied to the purchase price

2.     Agreeing on a purchase price and time frame for the purchase option to be exercised

3.     If rent is applied to the purchase price, the buyer and seller may need to seek advice from a tax consultant as in some cases tax returns may have to be amended

4.     Over time the interest rate and purchase price may fluctuate significantly changing the tenant’s ability to afford and/or qualify for the mortgage.

The parties can negotiate to have the purchase option occur at any point in time that they agree upon. Also, standard legal language can be added to the purchase option in order to establish a fair market value at the time the option is exercised. This can be accomplished by having the seller or buyer submit a suggested purchase price, which if not accepted, can trigger both parties to obtain appraisals. This enables a compromise to be reached establishing a purchase price based on the current market. While leasing with an option to purchase may be suitable for many, it is important to consider the challenges mentioned above before making a decision.