I’ve talked before about how we underestimate the opportunity property can be to business strategy. As number two on most balance sheets, property can significantly impact a business’ profitability.

But there are other potential hidden benefits. And it is all about timing.

A strategic approach to evaluating your commercial property leases can be an enormous catalyst for managing other desirable changes in your business.

Recently, I worked with a client to evaluate whether they should continue to lease their existing premises, or should consider moving. The client told me: “You’re our change modeller.”

That was a great insight and it had me realise how much my work to evaluate the strategic implications of a property lease can spark a range of positive organisational changes.

In another situation, a client used the reconsideration of their location and property lease as an opportunity to change their work culture. They are looking at amalgamating several branches in different locations to unify staff in one building and one culture. The evaluation of the property lease and location had been the tipping point.

The key is timing. We can get complacent when we have longer term leases and leave it to the last minute to consider their renewal. Starting a process to evaluate whether a property lease is going to continue to support a business’s future growth should be carried out at least 18 months before a lease expires. This way, a comprehensive analysis can be carried out, and the time lead will offer a far greater range of options.

This entry was posted on Tuesday 3rd June 2008 and is filed under Property Strategy. Both comments and pings are currently closed.