Colliers International Tenant Leasing Guide

Transcription

1 Colliers International Tenant Leasing Guide 1

2 Contents Allow us to introduce ourselves Getting started Top 10 tenant mistakes The Office Leasing process Step 1 - Determine your property needs Step 2 - Evaluate market alternatives Step 3 - Commit to premises Step 4 - Fitout design and project management Translating the lingo - Glossary of terms and FAQ s Relocation checklist 2

3 Allow us to introduce ourselves The who, what and why of Colliers International. The Office Leasing Guide This step-by step guide has been assembled to reflect Colliers International s knowledge of the leasing process and its pitfalls. Complete with information on fitout and make good costs, timelines and frequently asked questions, it is an essential handbook to ensure your decision to stay or go runs smoothly. Who is Colliers International Office Leasing? We are an award-winning team of office leasing professionals with intimate knowledge of the local and national leasing markets, occupier needs and the leasing process. At the forefront of our service is a commitment to delivering a business accommodation solution to meet your organisation s needs - now and in the future. We appreciate that your premises is more than just an address; it is a platform with which to make your business objectives a reality. Colliers International s culture of knowledge-sharing gives you access to the suite of skills required to make an informed leasing decision, including experts in workplace design project services, tenant representation technology, retail, industrial and sales. Why engage our services? Working with the Colliers International Office Leasing team will save you the time and confusion of dealing with multiple agents, landlords and consultants. We can streamline the process for you to allow you to focus on your core business. In contrast to the residential leasing process, office leasing practices allow you to work with one leasing professional to seek out all suitable options in the market. Our national database contains information on every office listing, agent and landlord so that we can exhaust the market to find the right option for your business, regardless of who the leasing agents are. Alternatively, if you prefer to use the services of a Tenant Representative, our Office Leasing Team is also able to refer you to specialists in this area. We look forward to being of service to you. Simon Hunt Managing Director - Office Leasing 3

4 Getting Started Making an educated decision about your office accommodation. When considering new office premises, it is critical to address the following questions: What are my options? Stay put If your present space satisfies your accommodation needs, but you are approaching the end of your lease, you may consider staying where you currently are. You will need to ensure the space is available for you to extend your lease, and then negotiate a new lease with the building owner. Relocate The expiry of your lease could offer you an exciting opportunity to transform your business and create new efficiencies by relocating to new premises. Why should I relocate? Business needs If your current space is too small, too large or inflexible relative to the way your organisation works, then new or re-engineered premises can act as a springboard for improved productivity and operational cost savings. Additionally, market conditions may create cost benefits supporting the business case for relocation. Brand value enhancement The building which you occupy and the fitout in your tenancy speaks volumes about your organisation. A revitalised fitout or new premises can strengthen your employees sense of brand as well as communicate your core values to customers and other stakeholders. Employee satisfaction and retention Entrepreneurial businesses will consider the many positive flow-on benefits companies achieve in repositioning their business and their people into better accommodation. Increases in staff morale lead to increases in staff productivity. Increases in staff productivity lead to increases in the bottom line financial performance of any business. How much will it cost? Operational costs Negotiability of rental and incentives is dependent on the equilibrium in your local marketplace. In certain markets, the development cycle has created favourable circumstances for tenants considering relocation. To understand conditions in your office market, contact your Colliers International professional for the outlook in your location. Fitout and make good costs Your entry and exit strategy to a lease can greatly affect the real cost of your commitment. Workplace design and fitout costs should be viewed as an organisational opportunity. A well planned and executed fitout will adapt to your organisation s growth and changing needs and minimise churn costs. A balance between your fitout costs and the benefit it yields to your organisation is therefore critical. In addition, make good commitments will affect your cash flow when exiting a lease. These costs are covered in more detail in this Tenant Leasing Guide. 4

5 When should I start? Plan, plan, plan Whether you decide to stay or go, knowledge is key. Allow sufficient time to ascertain your current situation, review other options, assess the marketplace context and possibly negotiate with your current landlord to ensure you optimise the end result. Timing The period required to conduct this process ranges from three to six months as a minimum and up to two years or more for larger organisations. Who should I involve? Your internal steering committee should be chaired by a senior employee, supported by decision-makers and influencers including human resources, IT, divisional heads and staff. You may wish to conduct a survey of your staff to determine their needs, preferred work style and location. Professional real estate advice is a critical part of the project team skill set. This will arm you with insight into the marketplace and your alternative options. By providing knowledge of productivity - enhancing office fitouts, a skilled workplace strategist and design professional will complete the team. 5

6 Top 10 Most common mistakes made by commercial tenants Starting the renewal or new premises lease negotiations too late. Not having a clearly defined real estate brief. Focusing too heavily on pure financial costs. Failure to appoint an internal single point of contact/project leader. Making incorrect/inaccurate estimations of their space requirement. Failing to leave enough time at the end of their lease to fulfil make good obligations. Acting too slowly once a decision is made on premises, consequently missing out on opportunities. Agree to terms prior to obtaining a space planning perspective (e.g. conducting a test-fit ). Failing to allow for growth space. Not appreciating that the best deals are often secured well in advance of the space actually becoming available. 6

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8 The office leasing process 4 steps to business productivity. Step 1. Determine your property needs. Understand business needs. Identify decision makers and confirm critical time path. Conduct accommodation requirement evaluation. Produce real estate brief. Step 2. Evaluate market alternatives. Relocate or stay put. Relocate Reconfirm accommodation requirement evaluation. Brief preferred lessors. Confirm development sites/ existing building options and assess via inspections. Begin offer/counter offer process. Short-list options, design consultant to evaluate space efficiency. Design consultation and test-fits Financial comparison of proposals Stay Put Consider existing premises as possible opportunity. Brief existing lessor. Reconfirm accommodation requirement evaluation. Design consultant to re-evaluate space efficiency. Begin offer/counter-offer. Step 3. Committing to premises. Relocate or stay put. Step 4. Commit to new (or existing) premises. Complete new (or variation of) lease documentation. Fitout design and project management. 8

9 Step 1 Determine your property needs. Taking your requirement from notion, to motion Skipping the planning stage triggers a number of the Top 10 mistakes most commonly made by office tenants. It is crucial to understand what your business and workplace, and therefore, property requirements are through a process of evaluation and forecasting. To help you with this, Colliers International offers a project advisory service that can plan your project from start to finish. Organisational briefing - confirm your business plan objectives Commercial Leasing decisions should be considered with a medium to long term mindset with most leases running for three years or more. Your property decisions should take into account your company s future requirements as well as today s needs. Guided by a professional, workplace strategist/ designer, the organisational briefing process will develop answers to a range of questions including; Is your business growing or shrinking? What are your brand values? What are your preferred work settings? What type of employees will you have in the future? What will your technology requirements be in three years? Are you considering acquiring or merging with other firms? What effect will moving have on your customers and staff? Only by adopting this concept-planning phase will you achieve the maximum benefit (both financial and strategic) in a relocation or re-engineering of your business accommodation. Only minimal gains are possible if the workplace design focus is restricted purely to the design and construction phase (Step 4). Involve key internal decision makers Assemble a team with a breadth of skills to drive the project. Consider involving your experts in IT, HR and Finance. They will be familiar with specific future trends that may influence your requirements and decisions. Their involvement from the outset will help clarify and focus your brief and achieve internal buy-in. Be sure to appoint a project leader to liaise with your internal stakeholders as well as your broker and consultants. 9

10 Step 1 Determine your property needs cont. The workplace brief The organisational briefing process will result in the documentation of your workplace requirements. Growth projects Space budget Space standards Organisational vision and objectives Cost parameters The real estate brief A well-prepared real estate brief will synthesise the workplace brief and translate this to your property requirements. The brief will expedite your decision-making process - you will save considerable time by only inspecting and reviewing suitable properties and you will also have a framework with which to assess and compare your options. An important element in developing this brief is to audit your existing premises - your real estate brief will document your desired outcome. What should be in your brief? Your real estate brief should consider a wide range of criteria: Size of space Fitout needs Number of employees (max and min) Image/quality/aesthetics Location Car parking Building services Office hours Security and access Lease structure preferences Technical requirements Timing IT and communications infrastructure Budget Environmental considerations/nabers Other unique needs Signage/naming rights Term/renewals Your brief should be documented and used to evaluate options. Consider ranking each factor in terms of importance as you may have to compromise on some items, depending on the options available. Know your local market and commitments During this phase, you should familiarise yourself with local office market conditions and existing lease commitments. By knowing the market vacancy rates, supply projections and indicative rentals, you will be in a better position to evaluate various proposals. Your Colliers International Office Leasing professional can provide you with an office market presentation which details these factors. 10

11 Step 2 Evaluate market alternatives. Inspect and evaluate your options. Real estate evaluation. Release your brief to the market To avoid having to deal with multiple agents, you can request your Colliers International professional to approach the market on your behalf. With an intimate knowledge of the market, together with a well established network of agents and owners, Colliers International will act as a single point of contact whilst still sourcing all space opportunities. Inspect and evaluate alternative premises, your current premises and prepare a shortlist When analysing alternative premises, consider timing, financial and other incentives which may be on offer. Your stay-put option should include expansion/contraction costs as well as potentially reconfiguring or completely refurbishing your workspace. Aim for a shortlist of three to four properties. Evaluate options against your brief, ensuring property options match your stated business objectives. Colliers International has developed a range of decision models and matrixes to assist in decision making, enabling short listing of a wide range of options. These tools dramatically improve efficiency in the evaluation process. Financial analysis There are several ways to compare leasing financials including: Gross effective rent per square metre Gross face rent per square metre Gross and net rent per square metre Total occupancy cost per employee Net face rent per square metre Net effective rent per square metre Further detail on these measurements is provided in Frequently Asked Questions. Look beyond the square metre rate on offer. Some office space is highly efficient, enabling you to seamlessly accommodate your employee quota in less space. For example, you may require 500m² to accommodate your staff in one building whilst another may be able to house them comfortably in only 400m². In this instance it does not make sense to compare the two options based on their rate per square metre but to use a lease analysis model (refer to the next page for more information about Colliers International lease analysis models). 11

12 Step 2 Evaluate market alternatives cont. Market Incentives Lease conditions, in particular the offering of market incentives can also have an impact on the feasibility of a particular option. Incentives are commonly offered in the following forms; Capital contributions towards your office fitout Rent free periods A combination of the above Incentives will depend on the market conditions at the time of your negotiation and your Colliers International agent can work with you to understand the state of play within your market. Compare your options using a lease analysis model Colliers International has developed a lease analysis model (LAM) designed to compare leasing options on a financial basis, using an apples to apples approach. The model allows the comparison of lease proposals from multiple lessors, demonstrating the cost of the financial offer (taking into consideration incentives, rent and term) over the life of the lease. Workplace design and fitout considerations It s not all about cost When evaluating your property options, don t forget to consider the non-financial costs and benefits for each property option. Your Colliers International workplace designer can help you evaluate each option s impact on factors such as staff productivity and communication, corporate identity, IT and communications performance and your customer base. If appropriately engaged at Step 1, Colliers International will maximise your ability to positively influence the workplace brief. In today s challenging business environment, it is critical that organisations extend beyond the traditional view of office accommodation and the measurement standards normally applied. It is now a fundamental requirement that the office architecture supports the intellectual work demanded by employees and facilitates an organisations continuous improvement strategies. It must also contribute towards the development of team networks and organisational learning systems. In addition, the office systems must support organisational change efficiently, effectively and with minimal redundancy. Test-fit the options - determine workspace efficiencies By conducting a design test-fit or site audit of the short-listed options, your workplace designer will determine the workspace ratio efficiencies for each property. This process also produces sample fitout designs prior to you agreeing to terms. 12

13 Step 2 Evaluate market alternatives cont. This process helps determine your fitout costs and will also enable you to compare your premises options on financial (e.g. fitout costs) and non-financial (e.g. optimisation of the workplace brief) criteria more effectively. Your workplace designer will provide the following services during this critical evaluation phase: Prepare a detailed existing site/space/fitout audit Assess items suitable for re-use in the new fitout Manage the pre-design process including a review of local authority approvals and code requirements Prepare selected site audits Prepare stacking and blocking plan Prepare preliminary concept designs Conduct building services audits Provide an opinion of likely fitout cost Fitout costs Attaining a fitout that is aligned with your organisation s envisaged outcome will depend on what components are viewed as necessary, as well as what is discarded during the design phase. It is critical that all aspects to be included in the fitout are assessed to determine their contribution to the overall objectives. Equally important is the identification and evaluation of those components overlooked. The identification of positive and negative components through the audit process provides the opportunity to maximise the effectiveness of the final fitout and potentially minimise its cost. As fitout costs can vary depending on location (CBD or Metropolitan), and the level of fitout required (i.e. Premium, Standard or Functional) it is best to contact Colliers International for a tailored estimate. 13

14 Step 3 Commit to premises. Completing or varying your lease documentation, commencing the full design process. Real estate issues. Heads of agreement Once the particulars of a leasing agreement have been negotiated, both parties will sign a heads of agreement. This document is generally not legally binding but is a gesture of good faith that terms have been agreed. When signed, this document will be used to brief solicitors so that a Deed of Lease can be prepared. Workplace design issues When a leasing agreement is contemplated, the workplace fitout process needs to be activated immediately. At this stage you should have completed: Needs analysis Space budgets Test-fit This will enable you to align your workplace design with your business needs and with accurate information regarding your organisation s requirements. The sooner a designer and project adviser is engaged, the better the outcome will be. It is vital that this stage is viewed as an investment in the organisation s future and not merely a new fitout. The fitout should be linked in with the organisational strategy. Leasing Documents During a typical lease negotiation, heads of agreement documents are used as a medium to determine terms and conditions acceptable to both the lessor and the lessee. Once the final position of both parties has been outlined, the lease documentation is then drafted by the lessor s legal representative and presented to the lessee in the draft form for review. When both parties have agreed on the documentation, the lease is executed and accompanied by a bank guarantee and relevant insurances (payable by the lessee). This forms the binding legal agreement between two parties. 14

15 Step 4 Fitout design and project management. The final stage of the process provides the perfect opportunity to re-think office imperatives and prepare a brief for the envisaged space that will promote organisational effectiveness, community, communication and productivity. The sooner you engage a capable designer and project manager to evaluate your needs, the more time you will have to create the space that will match your organisation s vision. Colliers International can manage the process from start to finish, including the following sequence of tasks: Design development/authorities approval Engagement and full briefing of all other specialist engineering consultants Commencement of detailed design Development of finishes and selection Short-list of furniture selection Review of opinion of likely fitout cost Detailed programme preparation Council/authorities liaison Detailed design and documentation phase Preparation of documentation for tender Finalise furniture selection Stakeholder coordination Obtain building/resource consents Tender review phase Determine agreed tender panel Tender management and analysis Review and assess tender responses Submit recommendation for client approval Contract administration/fitout phase Manage the delivery process and administer contracts Appoint all approved contractors and suppliers including head fitout contractor Cost and variation management Project manage delivery programme Project completion/defects rectification/occupation phase Oversee practical completion Timely issue of the Code of Compliance Inspection and sign-off Manage the identification and completion of all outstanding and defective works Cost reporting and final accounts 15

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17 Translating the lingo Glossary of terms and FAQ s. ABGR (Australian Building Greenhouse Rating) It is administered by a Government Department and rates the actual performance of a building and/or tenancies on a 6 star rating scale. It is part of NABERS system (The National Australian Built Environment Rating System) see Assignment The transfer of the right, title and interest in property of one person (the assignor) to another (the assignee). Base Date A reference date for determining increases in outgoings. Cap and Collar A term and method used in some market review clauses. It is a mechanism that puts a nominated cap or maximum amount by which the rent can be increased, or a collar, the maximum the rent can decrease, on the nominated market review date. As the commercial office leasing markets strengthen, these review methods become increasingly uncommon. Construction Certificate (Formerly known as Building Approval) Approval from the relevant authorities for carrying out building work on the premises, usually for fitout. Development Approval Approval from the local council with regard to zoning or changes in the permitted use of the premises. Green Star Green Star by the Green Building Council of Australia (GBCA) is a suite of tools which are predictive rating the building or tenancy s capability to perform and not how it actually performs. They incorporate all environmental aspects from energy, water and waste to indoor environmental quality and material impacts. See Green Star Tools for Office Include: Office Design: For the design of a new building. Excellent for leasing new developments and the most commonly used version to date. Office As Built: For what is actually built. Addresses the fact that often the constructed and commissioned building or fitout differs to what was designed. Rapidly increasing use. Office Existing: For buildings that have existed for over a year. Office Fitouts: For tenant s fitouts. Gross Lettable Area (GLA) GLA is the floor space contained within each tenancy at each floor level by measuring from the dominant portion of the walls outside faces, to the centreline of internal common area/inter-tenancy walls. Gross Effective Rent The rent payable under the lease net including all incentives and building outgoings. Gross Face Rent The rent payable under the lease excluding any incentives but including all building outgoings. 17

18 Translating the lingo Glossary of terms and FAQ s cont. GBCA (Green Building Council of Australia) An industry body facilitating the transformation of the property market with regards to Green buildings and the National Administrator of the Green Star suite of rating tools. See Gross Rent GROSS RENT = The rent payable inclusive of building outgoings GROSS RENT = Net Rental + Outgoings Most leases are based on gross rents plus your proportionate share of any increases in the building outgoings over and above a predetermined base date. Incentive An inducement offered by the Lessor to attract new tenants to the building. Can be offered in a variety of ways (e.g. rent free, provision of fitout etc). Lessor That party, governing the formal lease documentation at a particular property, typically the owner or owner s representative. Lessee That party, whose name appears on the formal lease document, binding themselves to the terms and conditions stated therein. Otherwise known as the tenant. Lettable area/net Lettable Area (NLA) NLA (measured in square metres) is the floor space between the internal finished surfaces of permanent internal walls and the internal finished surfaces of dominant portions of the permanent outer building walls. It generally includes window frames and structural columns and excludes toilets, cupboards, plant/motor rooms and tearooms where they are provided as standard facilities in the building. It also excludes areas dedicated as public spaces or thoroughfares such as foyers, atriums and building service areas. Make Good The Lessee s obligation to reinstate the tenancy prior to expiry of the lease. NABERS (National Australian Building Environmental Rating Scheme) Is a multiple index performance based rating tool that measures an existing building s overall environmental performance during operation. The energy component of NABERS is the ABGR rating. The brand also includes NABERS Water, NABERS Waste and NABERS Indoor Environmental Quality, see National Administrator of NABERS is from the Department of Environment and Climate Change (DECC). Net Effective Rent The rent payable, after market incentives, excluding outgoings. Net Face Rent The rent payable prior to the inclusion of any incentives (e.g. rent free period). Option The Lessee s right to renew a lease for an agreed period of time prior to expiry of the initial lease. 18

19 Translating the lingo Glossary of terms and FAQ s cont. Outgoings Statutory costs associated with operation, upkeep and/or maintenance of the building (e.g. air conditioning, lift maintenance, common area cleaning, security and electricity). It also includes costs such as municipal rates, water and sewerage rates and usage charges, car park levies and land tax. Ratchet Clause The mechanism whereby the rent upon review cannot decrease. Rent Review The method by which your rent can vary during the term of the lease. Can be either a market review, a predetermined figure or fixed to an index such as the CPI. The review structure for the duration of the lease period is agreed prior to lease commencement. Sublease The mechanism under the provisions of the lease allowing the lessee to find a suitable replacement tenant. This is subject to lessor approval and unless specifically stated, does not limit your legal responsibilities during the term of the lease. Work Space Ratios A common ratio used to measure the tenant efficiency of individual building s floorplates. This ratio is calculated by dividing the total net lettable area divided by the number of people who occupy a floor. Average Work Space Ratios vary between 1:10 and 1:20 square metres. The following are just a few of the more commonly asked questions about leasing office space. How can I negotiate the best deal? By carefully selecting the right properties on your shortlist you can create a competitive environment whereby the best rent can be achieved. Your Colliers International consultant can assist throughout this process. What is a square metre? A square metre is an area of measurement, one metre by one metre. It is approximately equivalent to square feet and is the standard unit of measurement for office space in Australia. How much space will I need? The amount of space required will vary depending of the nature of your business and the efficiency of the space you end up selecting. As a rule of thumb you will require roughly between 10m² and 20m²* of space per employee. Are amenities included in the Net Lettable Area? No, as the amenities are incorporated within the common (core) area of a building and comprise toilets and tearooms. This excludes amenities constructed as part of the lessee s fit out. How can I be sure that all properties listed will be shown as an option? 1. You will be in the driver s seat throughout the entire process. Your Colliers International consultant will simply present all suitable options to you and save you the time and inconvenience of inspecting unsuitable options and dealing with multiple agents, architects and consultants. You will still create the shortlist and make the decisions. * Source: Colliers International Project Services 19

20 Translating the lingo Glossary of terms and FAQ s cont. 2. If you choose to work with a Colliers International Leasing Representative as your preferred agent, you will ensure they receive a fee from the building owner (regardless of who the owner or leasing agent is). By working with us as your preferred agent you are empowering us to source all property options with ALL owners and agents in the market to find the most suitable accommodation for your business. What cost elements will my outgoings consist of? Outgoings means the total of all costs, charges, rates, taxes, fees, expenses and other outgoings incurred by the landlord or for which the landlord may be liable in respect to the whole part of the building. These include rates, taxes and operating expenses such as insurance, common area cleaning etc. What are the differences between gross rent and net rent, face rent and effective rent? GROSS RENT is the rent calculated inclusive of all building outgoing costs. The tenant usually pays the increases in outgoings. NET RENT is the rent calculated exclusive of building outgoing costs. Under a net lease outgoings are still payable but paid by the tenant separately to the net rent. FACE RENT the rent calculated before taking into account incentives or increases. This rent is stated in the lease. EFFECTIVE RENT is the rent calculated across the full term of the lease after taking into account the effect of an incentive. EFFCTIVE RENT = FACE RENT INCENTIVES GROSS RENT = NET RENT + OUTGOINGS Will I be able to sublease or assign my lease? Most commercial leases allow the Lessee to sublease or assign their premises. Typically, the Lessor is unable to unreasonably withhold consent to the sublease/assignment. A prudent Lessor however will consider the strength of covenant being offered by the incoming tenant and will be reluctant to accept a sublease/assignment where their financial position and/or security will be reduced as a result of the sublease/assignment. What additional costs am I responsible for over and above the base year? The Lessee will be responsible for a proportion of any increases in the total operating expenses relative to the year or the part thereof. The proportion will be calculated in accordance with the Lessee s percentage contribution as specified in the lease. Operating expenses will be defined in the lease and will vary from building to building. The base year is the nominated year stated in the lease. This may be updated subject to the rental review clause in the lease. What are the rent review patterns for the term as well as the option period? Most Lessors will have a standardised lease proposal for their building, including a rent review pattern pre-agreed in light of the Lessor s own objectives and current market conditions. Typically, the two most significant influencing factors on rent review patterns are lease term and the commencing rental. Rent review methods may include fixed increases, structured increases or reviews to market levels (with or without a ratchet clause). A ratchet clause ensures that the reviewed rental can be no less than the previous year s rental, CPI plus a fixed percentage, and often comprise a combination of these throughout the term of a lease. 20

21 Lessees will typically request an option period as part of the lease negotiation, allowing them to extend their occupation beyond the initial lease term. It is advisable to agree on the rent review pattern for this term as part of the initial negotiations. Both parties should agree to establish the review pattern for the option period within six to nine months of the expiry of the initial lease term. When does my company become legally bound? Or, when does the agreement become legally binding? During a typical lease negotiation, leasing proposals are used as a medium to determine terms and conditions acceptable to both Lessor and Lessee. This will lead to a Heads of Agreement document or Memorandum of Understanding, outlining the final position of both parties, and accompanied by a leasing deposit, often equivalent to one month s gross rental as a security. This deposit is typically held in the leasing agent s trust account to be offset against the first month s rental or leasing fees payable by the Lessor. At this stage, both the Lessee and Lessor are not usually legally bound to commit to the premises (unless otherwise stipulated in the documentation to date) however, the Heads of Agreement document provides a framework by which the Lessor is to instruct solicitors to prepare formal lease documentation. Do I need to pay any fees to my agent? If property options are sourced via a leasing representative, the agents leasing fees are paid by the landlord, thus no direct payment from the lessee to the agent is required. If the lessee retains a tenant representative to facilitate the process and act on behalf of the tenant in the negotiations, a negotiated fee would be payable to the tenant representative, (in some cases however, this fee may be paid by the landlord as a reimbursement of the tenant s consultants fees). What is a Make Good and how much will it cost? A Make Good is your (the Lessee s) obligation to return the premises to its original state upon completion of your lease. The costs vary depending on the space and scope of works required, so contact you Colliers International agent for more information. If you are relocating, Colliers International can undertake the Make-Good on your previous premises as well as design and fitout your new premises if required. The signing of the formal lease document will legally bind the Lessee to the lease. This is accompanied by the provision of consideration (typically by way of a bank guarantee). The signing of the lease document by the Lessor will typically bind the Lessor to the lease unless otherwise agreed or stipulated. 21

22 Relocation checklist Step-by-step guide to the relocation process. Colliers International has professional expertise in relocation management including the following sequence of tasks; Preliminary Finalise lease for new location. Notify present landlord of relocation date. Advise staff of date and location of move. Finalise design for new premises (if required). Create a master change-of-address. Pre-Move General Pre-book elevators and loading docks for moving day. Tender and award moving contract. Tender and award telephone and computer cabling. Inventory existing furniture. Code furniture/equipment on a colour-coded floor plan. Audit keys. Pre-order any new office furniture and equipment. Order new stationary. File change-of-address forms with post office and forward mail. Check your insurance coverage for the move. Confirm the Certificate of Occupancy and any other required permits of licenses have been obtained. Advise specialty suppliers (telephone, bottled water, coffee service) of new address. Mail moving notices. - Banks and financial institutions - Photocopiers - Clients and customers - Clubs and organisations - Credit accounts and credit cards - Insurance companies - Accounts receivable/payable - Newspaper and magazine subscriptions - Telephone company - Prospects and special services Hold a meeting at new premises in three weeks prior to move. Bring all parties involved (design/ construction/removalists/cabling company/it specialist) to ensure all details are covered off and all responsibilities clear. Schedule public relations effort, including plans for news releases, articles, office-warming parties, etc. Change locks/access codes on new premises as close to moving day as possible to secure access. Decide on security procedures for the move. Arrange for listing on lobby directory of new building. Arrange for post-move cleaning. Pre-Move Internal Finalise new seating plan and identify each location so labels can be prepared. Assign move supervisors to departments. Develop a master relocation project schedule. Schedule and implement a regular programme of clean-up (purge files, dispose of trash). Schedule staff for unpacking, stocking supply cabinets, storerooms, file rooms e.g. and removing tags from all furniture and equipment to ensure your company will be operational as rapidly as possible after move. Arrange for off-site storage of old files. Pack contents of all filing cabinets, desks. etc, ensuring everything is properly labelled. Arrange for staff to tour new premises a few weeks prior to move. Schedule post move training for security, fire and lift safety procedures at the new facility. Distribute access cards and keys for new premises. 22

23 Relocation checklist Step-by-step guide to the relocation process cont. Moving Day Arrange with the building manager to have the airconditioning in operation during the move. Remove computer equipment (server) and phone system prior to arrival of movers and commence reinstallation at new site. Draft an emergency contact list for vendors such as elevator maintenance, building management, utilities, telecommunications and moving company. Post-Move Re-install and test telephone system.** Distribute new phone list and map showing location of departments. Re-install and test all computers. Do a detailed walk-through of the premises and report any damage to moving company. Transfer your insurance to the new location. Obtain Certificates of Insurance from your insurance company. Reconfirm termination of old leases. Collect parking passes, security cards and keys for the old facility. Confirm the return of any deposits held by the landlord for these items. Audit final invoices against contracts and progress payments and pay retention. Complete and file all warranty information for all new furniture and equipment purchased. Confirm the change-of-address corrections made. Schedule press release and client announcement (if different from moving notice). **The re-installation and testing of telephone systems should also be considered during the pre-move phase to ensure systems are working post move. 23

24 We deliver specialised real estate services globally to help our clients accelerate their success. We offer a full range of property solutions... Agency Landlord Representation Tenant Representation Consultancy Corporate Solutions Facilities Management Investment Services Portfolio Management Project Management Project Marketing Real Estate Management Research Sustainability Valuation and Advisory Workplace Solutions across every property type... Development Healthcare & Retirement Hotel Industrial Office Residential Retail Rural & Agribusiness in every major market in Australia. ACT Canberra NSW Coffs Harbour Newcastle Sydney CBD Sydney North Sydney South Sydney South West Sydney West Wollongong NT Darwin Qld Brisbane CBD Cairns Gold Coast Sunshine Coast Toowoomba Townsville SA Adelaide Vic Ballarat Geelong Melbourne CBD Melbourne East Melbourne West Tas Hobart WA Perth 511 offices worldwide in 61 countries DISCLAIMER The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International and affiliated companies in their best judgement, in good faith and as far as possible based on data or sources which are believed to be reliable. The material contained herein is not intended to substitute for obtaining individual advice from Colliers International or another advisor able to provide the services of a qualified professional person. Colliers International, its officers, employees and agents expressly disclaim any liability and responsibility to any person whether a reader of this publication or not in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance whether wholly or partially upon the whole or any part of the contents of this publication. COPYRIGHT Colliers International All rights reserved. No part of this work may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems) without the written permission of Colliers International. Accelerating success.