When companies want to move into a facility that has been uniquely designed for their specific use, the first decision is whether to lease or purchase. JSC has the experience and expertise to assist their clients in making this financial decision. Some businesses require large capital investments in equipment and machinery, and some businesses may still be experiencing a high growth rate. All of these factors play a role in the lease versus buy decision.
On occasion, the “right” facility is not available in the speculative lease market. At this point in time, it is important to examine all possibilities and consider a build-to-suit alternative.
Some of the important issues to consider are as follows:
- Evaluate Current Facility: Careful evaluation of your current facility, understanding process flow and/or office layout criteria, and quantifying your utility and growth needs, leads to locating a more accurate and responsive facility.
- Determine Financial Goals: There are many financial issues that are a part of any major facility decision. While these issues are best evaluated by your own financial group, providing correct numbers and assisting in the review from a real estate and facility perspective will improve the accuracy of the financial decision.
- Identify Location Parameters: Determining the best location can be the most difficult part of any facility decision. There are emotional factors, objective considerations such as demographics, and traffic considerations for both employees and freight. Blending these factors with our knowledge of the real estate market is important in making the best deal.
- Conduct Research/Property Tour: JSC can quickly apply the search criteria to a database of available properties and locate the land that has the best opportunity of meeting the client’s needs. This leads to an effective use of the client’s time and creates the confidence that the client’s needs and facility goals are obtainable.
- Prepare the Proposal: Preparing the proposal that represents the client’s specific needs is critical to being able to make accurate comparison of the alternatives. There are two major components to the proposal. First is the building and construction specification which defines the structure (bricks and mortar) of the building. The second major component is the client’s preference for structuring the real estate deal points (lease or own)?
- Analyze the Alternatives: There are many variables to evaluate when trying to make the right real estate decision. Some can be evaluated in dollars, while others require a subjective evaluation. Our goal is to provide an “apple to apple” comparison, to the extent possible, to assist in making the best decision.
- Make the Deal: There is no substitute for experience when it comes to “making the deal”. JSC professionals have closed over 1,250 transactions in the last several years.
- Manage the Construction Process: JSC Realty & Investment Service Construction Management team has the experience to bring lenders, architects, engineers and contractors to the table to make the client’s building a reality. Click on this link for more detail on our Construction Management Process.
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