Category Archives: Corporate Relocation

5 U.S. Cities Positioned for Business Success

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business-561387_1920By: Josh Gerth, Vice President, JLL

We have all heard the phrase before: location, location, location. If you have plans to start a business soon, be sure you have this lasting phrase tucked in your back pocket.

We’re in the era of small businesses and startups popping up all over the U.S. In fact, the U.S. Small Business Administration reports that an estimated 28 million small businesses exist in the U.S., accounting for 54% of all sales. Competition for small business success is fierce, with an unfortunate 96% of small businesses failing within 10 years.

Before you finalize your business plans, sign an office lease and head down the road of entrepreneurship, choose the best location to accelerate success. You won’t have to travel far either, as the Great Lakes region is booming with perfect locations for your next small business. Beyond the finances, these cities are buzzing with new retail and residential hot spots.

Read below for five cities that are waiting to welcome your new business (and employees) home.

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4 Ways to Grow Your Business with Portfolio Optimization

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By: AJ Magner, Managing Director with JLL

Collaboration I’m sure you’ve heard. The commercial real estate industry is thriving. In fact, according to JLL, investment sales in the U.S. are on pace to reach an all-time high this year.

To keep your real estate healthy and profitable, portfolio optimization should still be top-of-mind … even in the strongest economic climates.

When you think portfolio optimization, do you think cost cutting or space reduction? Despite initial assumptions, there’s more to portfolio optimization than scaling back in times of trouble.

Rethink Real Estate: The Big Picture

Defined by JLL, portfolio optimization is “a comprehensive process that models real estate supply against real estate demand to drive efficiencies across a portfolio.”

It’s not just about cutting back. In many cases, portfolio optimization has been utilized to justify the need for more real estate.

Taking a step back: As one biggest line items on your business’ budget, it’s vital to approach real estate spend strategically—during the best (and worst) of times. Beyond basic rental and operating costs, your real estate portfolio plays a starring role in employee attraction, retention and overall productivity.

Looking at the holistic, long-term impact of your space, is it adequately meeting the needs of your business?

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Aim Higher: JLL Presents The 2015 Digital Skyline

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By: Andrew Batson, Senior Research Analyst at JLL

Are you an investor curious about market outlooks, or a tenant approaching lease expiration? Well, I have good news. The annual Skyline Review is back.

Each year, JLL’s research team analyzes the top North American skylines and gives investors and tenants alike a personal, up-close, look at some of the highest-profile commercial buildings and office towers in our cities. JLL notes, “These assets are the true drivers of leasing supply, demand, rents and development and serve as the building wish list for foreign and domestic institutional investors.”

The report provides a birds-eye view of local urban office markets, including both micro and macro-level statistics from floor-by-floor leasing to investment performance.

And now—for the first time ever—JLL is introducing the Digital Skyline.

JLL Skyline Blog Image

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JLL Experts: Rust Belt Critical to Future U.S. Economy

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By: John Sikaitis, Managing Director and Christian Beaudoin, Senior Vice President – JLL

John Sikaitis at a recent speaking engagement.

John Sikaitis at a recent speaking engagement.

While there’s fluctuation across the globe, the overall outlook for the U.S. economy remains strong. Thanks to an economic environment characterized by the continued elevation of corporate profits, the strongest job market since the late 90s and economic growth that is roughly 15 to 20 percent above levels in 2013, the U.S. dollar is at its highest level in years.

That momentum, coupled with a substantial drop in oil prices, is energizing consumers, fueling the highest consumer confidence level in eight years, which will drive enhanced growth to economic prospects over the next 24 months.

The same optimism exists for the commercial real estate industry in the U.S.

Net absorption topped 50 million square feet in 2014, a 38 percent increase from 2013; vacancy fell below 16 percent for the first time since 2008 and the American corporate is demonstrating increased signs of growing their real estate footprint. In the third and fourth quarter of 2014, 46 percent of tenants greater than 20,000 square feet completed leases with a growing real estate footprint—double the rate of any other point in this cycle. Across the vast majority of markets, the recovery has gained substantial momentum, fueling enhanced confidence from landlords and rent growth across 85 percent of the markets JLL tracks in the United States.

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How To Advance Your CRE Negotiation Strategies

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By: Collin Wheeler, Vice President at JLL 

JLL-Keys-successReal estate is expensive. In fact, it’s usually one of the most expensive line items on a business’ financial statements.

A decrease in rent, real estate taxes or capital exposure can have major impact on the bottom line. Often overlooked, hidden liability within a lease document can also have consequences. In the ever-changing economy, I frequently see organizations fall into a common real estate trap when they lose sight of financial impact, and make hasty, simple decisions based on landlord direction and lack of leverage.

Are you approaching your next move or occupancy decision? Below, I discuss a few tips to engaging in more strategic negotiations, plus insight into why working with a tenant representation advisor will save you money in the long run.

You might be shaking your head in disagreement (I get that), but please read on.  In addition to bottom line dollars, there are other avenues of liability and flexibility that are addressed.  In an age where business can change overnight (expand, contract or merge), flexibility within real estate situations are increasingly important.

Negotiation 101: Keys to Success

You can set yourself up for successful negotiation by being proactive, whether you are facing relocation or staying in your current asset.  There are two keys to getting what you want: time and leverage. Here’s why.

  • Time: If your lease is expiring in six months (and you haven’t engaged the landlord), you’re in a tough spot. At JLL, we involve the landlord no less than a year in advance of expiration. From the landlord’s perspective, he or she hopes to keep current, paying tenants in place. This means no down time (or lost rent) between tenants, no significant capital requirements by a new tenant as an enticement to lease, and no additional costs associated with a new transaction.  Therefore, most landlords are open to and appreciative of early negotiations.

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Open vs. Closed Office Space: OH, PA & MI Businesses Deliberate [Survey Results]

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By: JC Pelusi, Market Leader, Managing Director, JLL 

The New Yorker called it the “open-office trap.” Inc said, “…open plans are better after all.” The debate over open versus closed workspaces is far from over.

Naturally, we wanted to know firsthand: What do business professionals in our neck of the woods prefer? Do they feel more productive in a cubicle, or a shared area?

Between September 23 and October 10, JLL’s regional office conducted a survey—targeting local business professionals in Ohio, Michigan and Pennsylvania—to find out what’s really trending in office space. Out of 100 survey recipients, 84 percent said their office environment is either very important (42 percent) or important (42 percent) to individual success. So, it’s critical that employers pay attention and provide a desirable, attractive place to work.

What’s Trending in Office Space?

Of those surveyed, just over half (51 percent) currently work in an environment with a good mix of open and closed space. Another 36 percent work in more traditional offices, and only 10 percent reported working in an open office, with no private zones.

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Survey Findings: Leading Trends

1. A majority of survey respondents (35 percent) said open, collaborative office space hinders individual productivity. Another 16 percent said these types of workplaces fuel their creativity and productivity.

JLL-Survey-Space-Planning
 

2. When considering a new company or employer, real estate is definitely a factor (but not critical) in 70 percent of respondents’ decision-making process.

JLL-Survey-Space-Design
 

3. Eighty percent said their dream office would include a good balance of open and closed space.

JLL-Mixed-Use-Space
 

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Your Next Move: A Guide To Your Corporate Office Relocation [FREE DOWNLOAD]

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 By: JC Pelusi, Market Leader, Managing Director, JLL 

Your office space has the potential to drive employee productivity, retention, recruitment, and overall company performance.

Bottom line: Your space impacts your bottom line. 

But don’t take our word (or commercial real estate bias) for it. JLL recently helped Oswald Cos. secure new space in Cleveland. Oswald President and COO, David Jacobs, told us:

“Our new environment instills collaboration and has that open feeling; enabling all of us to do our jobs better. The new space has been an absolute godsend to our business.”

Finding and designing the perfect space in the right location at the right price is not easy. So, it’s more critical than ever that you take a strategic approach when executing a corporate move.

JLL follows a proven step-by-step process to help leading organizations find space that not only suits unique bottom-line objectives and requirements, but also sets the stage for future growth.

Are you approaching your next move, or is it time to put the building blocks in place to start a conversation about your current space? Below, I’ve included a snapshot of the 9-step journey to a corporate relocation.

9 Steps To Guide Your Company’s Next Move 

1. Build a team of trusted expert before you begin.
2. Set objectives and requirements.
3. Map out a custom timeline.
4. Determine a preliminary project budget.
5. Identify prospective spaces.
6. Tour the market.
7. Evaluate properties on your shortlist.
8. Finalize letter of intent and negotiate your lease.
9. Plan and implement your next move.

Download the Your Next Move eGuide for a snapshot of each step in JLL’s strategic approach. Keep in mind that this is a general guide, which is adjusted to accommodate your unique business needs.

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How To Create a Data-Centric CRE Strategy

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By: JC Pelusi, Market Leader, Managing Director, JLL 

I’m sure you’ve heard the buzzword “big data” in your office, or read about it in your favorite blogs and publications. The popularity of the term “big data” continues its steep climb upward on Google Trends, even today (screenshot below).

JLL-Big-Data
Data has captivated the business world. The ability to track and capture data, regardless of industry, has transformed the way executives are reporting and capturing value.

JLL recently released the first white paper in a four-part series on developing Data-Centric CRE. According to JLL researchers:

“Companies that embrace internal and external data, manage its flow carefully but efficiently, and structure it to create actionable information and insight have a strong competitive advantage.”

This goes for CRE teams, too. The ability to make a smart move, determine a construction budget or advocate for more sustainability practices can all be driven by data-centric business cases. CRE teams have put new emphasis on the importance of data, but most still have a long way to go.

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A Step-by-Step Guide to Your Next Office Renegotiation or Relocation: Part VI

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By: Tim Kay, Senior Vice President, Project and Development Services at JLL 

A Step-By-Step Guide To Your Next Office Relocation or Renegotiation  As a lease expiration date approaches, many mark their calendars in dread of the administrative tasks ahead. And although moving is complicated, it’s also a unique opportunity to reinvent your culture, address your space utilization and ensure your strategy is aligned with organizational objectives.  

At JLL, we follow a strategically crafted roadmap to guide our clients through the process. This is the final post in a blog series; each post will serve as a stop on the way to your destination – success.  

Next Stop: Plan and Implement Your Next Move 

So, you have an architect on board and your space is officially in the works. You can finally see the finish line. The lease is signed, the base building analysis is complete, and construction estimates are complete.

But, don’t uncork the champagne just yet. Before you can celebrate, there are a few final steps you and your team must observe to ensure the move is properly executed.

Step 1: Determine Design Details 

Before launching construction, you must first add a general contractor (GC) to your team. Ensure that the GC you select understands your deal drivers and company vision because he or she will facilitate build of your end space. The GC plays a critical role during design and construction.

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An Inside Look at Cleveland’s Elite Workspaces: Q&A with President of Oswald Companies

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The office is the cornerstone of any business. It’s at the heart of organizational structure, productivity and external branding. JLL’s real estate experts get it. They are committed to securing the very best spaces to fit specific business needs. This is the first post in a series spotlighting a few of our region’s most elite workspaces.

In late 2010, Oswald Cos. approached JLL with a common problem faced by commercial real estate tenants. The Cleveland-based, employee-owned insurance brokerage firm did not have very flexible lease terms, limiting overall growth for the foreseeable future.

Not long after Oswald and JLL started searching the local market, space at 1100 Superior quickly rose to the top of Oswald’s list. The company moved into the spacious, 72,000-square-foot space on Superior Avenue in downtown Cleveland, in time to coincide with its 120-year anniversary in 2013.

OswaldCentreWith a brand new, state-of-the-art conference center, functional, modern design, leading technologies, and huddle rooms for collaborative and creative meetings, Oswald Centre qualifies among Cleveland’s most elite spaces.

Now that Oswald has had time to get comfortable in their new space, we met with company President and COO, David Jacobs, to see how he (and his employees) have adjusted to the new headquarters.

Q&A With Oswald President & COO, David Jacobs

Q: What has the last year been like since the company’s move?

A: Great! Actually, more than great. Our employees saw Oswald’s level of commitment to them. It meant a lot to them to know that they are so valued by the organization that leadership built a better environment specifically with them in mind.

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