Today’s businesses are constantly in a fluid state of motion. To be successful, companies must be dynamic, constantly evolving and adjusting to the changing market conditions. Perhaps one of the most overlooked areas of business dynamics that is critical to long-term success for any business is a company’s commercial real estate strategy. Successful landlords understand, anticipate and meet clients’ needs.

Growing Pains: Companies seeking office space throughout the Southeast today demand the ability to grow at a location and the flexibility to decrease the amount of space they lease, based on real-time needs. This follows today’s “new business model” — responsive, efficient and nimble. Landlords that can offer a wide range of office locations, price points and high-quality space availabilities have an advantage.

More Power: Today’s technologically sophisticated companies, regardless of the industries in which they operate, expect owners and managers to understand the importance of office space that is “ready to go.” They demand plug-and-play space with no hassles. Technology companies are not the only businesses that require advanced infrastructure and capabilities. Across the board, office users today demand more than a telephone line and electrical outlets. The needs range from telecom and data to increased power and cooling.

From Point A to Point B: Today’s business moves more rapidly than ever. Consequently, companies require similar speed in completing real estate transactions. Without quick turnarounds, you lose opportunities. When I first entered the real estate business 18 years ago, it was not uncommon for a 20,000-square-foot lease transaction to take 5 or 6 months to close. Today, that timeframe has been reduced to 1 to 2 months, and in some cases to a matter of weeks. Businesses focus space searches with landlords that are known to be efficient and professional.

Location. Location. Location.: The founding tenet of real estate still holds true today — location is everything. However, location factors now include proximity to knowledge workers, specifically knowledge workers with certain sets of skills. Additionally, easy access to transportation modes, such as airports and freeways, is still important. A company usually wants to be near its customer base.

Stumbling Block or Stepping Stone: Companies seek long-term relationships with landlords. This business partnership is crucial for both parties. Landlords that know their tenants’ businesses can anticipate potential challenges and proactively find solutions to their challenges.

Customer is King: Customer service took on a whole new meaning in 2002, and it is focused on returning to the basics. The best landlords succeed in attracting new companies and retaining existing customers by being responsive to fundamental needs. That means being there to assist during move in, keeping the common areas clean and well maintained, and attending to customer requests in a timely manner. Customers don’t want to pay for the fluff — they want clean, quick and efficient services.

I Can See For Miles and Miles: When surveying potential office space, a growing percentage of companies want to see open space. Open floor plans foster synergy, efficiency and productivity. Typically, newer, modern “smart” office space plans are designed to accommodate this work model.

Burn Rate Economy: With the economic climate today, companies prioritize more modest ways of operating. Companies focus on bottom-line issues more than ever before. That is not to say good businesses didn’t focus on price in better times. But today, delivering value for the money is a primary focus. Transaction economics take center stage. Companies are seeking — and owners are now more inclined to offer — concessions in a variety of packages to get a transaction done. Landlords are competing based on a customer’s total cost of occupancy.

Signs of the Times: A company’s building choice and suite reflects its business identity. Companies have come to learn the value of leveraging a building’s image and have focused on securing signage rights atop a Class A facility that showcases a business’ name. In addition to rooftop or “eyebrow” signage, customers also negotiate for signs at parking lot entrances or in lobbies to gain additional exposure. Building signage allows companies to increase identity and awareness among target audiences. The ability to capture property or building signage has become increasingly important. By leveraging the professional environment and high quality image a Class A building provides, a company can communicate a great deal about its success, prestige and power. It also conveys a prominence to its employees and helps attract a skilled workforce.

Window of Opportunity: We have experienced a “flight to quality” over the past 12 months as companies seek the highest quality offices in the market. Not surprisingly, some of the highest quality assets are outperforming current market conditions. Opportunistic companies recognize that now is a perfect time to graduate to Class A buildings by capitalizing on lower rental rates and market conditions that have become more favorable to tenants.

Donald J. Huffner is the senior vice president of Equity Office Properties Trust’s Southeast region, which encompasses Atlanta; Orlando, Florida; and Charlotte and Raleigh/Durham, North Carolina. Equity Office’s Southeast regional portfolio totals 9.2 million square feet of commercial office space.


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