By Scott Henley
If your company decides to densify its office space by putting more employees into fewer square feet, make sure you’re in an industry suited to open office plans. The latest research from Newmark Grubb Knight Frank shows that savings achieved as a result of densification may easily be wiped out by a decline in employee productivity.
While reducing the square footage occupied per worker appears to be an easy way to cut costs, it’s critical for companies to be aware of this potential negative impact. NGKF notes that just a 2% decline in productivity can wipe out any costs savings—and in six out of the 10 major metropolitan areas, including Atlanta, Chicago, and Los Angeles, all it takes is a 1% drop.
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At least $400,000 in renovations are proposed at the Prominence office park in Baymeadows for RP Funding, which intends to open a servicing center that will expand to 150-175 employees.
CFO Jon Woods said RP Funding expects a further $100,000 investment in furniture and equipment. He anticipates a mid-May opening.
Scott Henley of Newmark Grubb Phoenix Realty Group represented RP Funding in the lease negotiations. Woods said Jesse Shimp of JLL represented Crocker Partners, who is the landlord at Prominence.
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By Scott Henley
Choosing just where to open a new business, move an existing business or expand into new markets is among the most crucial decisions you’ll make for the financial and reputational health of your company. Making the right choice can open up additional revenue streams, significantly boost your client base and strengthen your business’s brand. But a location misstep can cost you millions in wasted expenses and unrealized sales, plus damage your company’s competitive standing.
Newmark Grubb Phoenix Realty Group offers these seven top location strategies that can help boost your business’s profitability, positively impact your P&L statements, and improve your chances for long-term success.
Newmark Grubb Phoenix Realty Group helps business leaders achieve success through better real estate solutions.
Think long-term: Many businesses unwisely approach their corporate location strategies as something of a short-term checkers match. Rather, your approach should be more akin to a long-term chess game. Establishing a new location is heavily resource-intensive, sapping funds, time and energy. Make it worth your while by opting for locations that will serve you well into the future.
Research what’s coming: Locations evolve over time. Area populations age and not all locales are considered attractive to younger, savvier consumers looking for places to live, work and shop. Also, politics that can affect business may change with new elected officials. Carefully study the current and projected populations and politics of any location you’re considering.
Stay informed on infrastructure: An area’s infrastructure features such as roads and bridges can significantly impact your business if not adequately maintained. Before choosing a specific address, check with city and state transportation officials to assure that local roadways are well maintained and that no major changes that could affect your business are in the works.
Consider operating expenses: Your choice of city can impact the total operating expenses of a business or branch. Available workforce, training programs, economic incentives, and cost of labor – all of these components can have an impact on the profitability of a business as a whole, not just a specific business unit.
Know your tax and regulation limits: A business’s various branch locations will fall under different state and local income sales tax laws, which can impact earnings. Government zoning laws can limit the size and construction specifications of buildings and the use of signage. Plus, state and local laws can affect the types of permits and licenses necessary to legally operate a business in a particular area.
Don’t wager your business’s success on a poorly chosen location. Before making a potentially ill-fated move, consult with Scott Henley at Newmark Grubb Phoenix Realty Group. Call Scott directly at 904-514-2883 to schedule an appointment.
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