Campana Waltz CRE thanks for following me on Twitter! https://t.co/cKMGWfBop4

Campana Waltz CRE thanks for following me on Twitter! https://t.co/cKMGWfBop4

— Nathan K Smith (@AustinTenantAdv) February 6, 2018

from Twitter https://twitter.com/AustinTenantAdv

Austin Economic Growth Remains Strong in Q4 2017

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Austin Job Growth

According to the Federal Reserve Bank of Dallas Jobs in Austin grew at a rate of 5.1% annualized rate in the 4th quarter of 2017. Leisure and hospitality jobs lead the pack. There was also some strong job growth in the Business and Professionals sectors. The hiring of temp employees was very high which according to Fed Analysts is an indicator that full time hiring will be strong in the coming future.

Austin Unemployment Rate

The unemployment rate in Austin, Tx held at 2.8% in December 2017 which is indicative of a tight labor market. This is also over 1% lower than the Texas unemployment rate at 3.9%. Nationally the unemployment rate is at 4.1%

Average Hourly Earnings in Austin

Average hourly earnings in Austin are $28.63 which continues to remain above the state and national averages. In Texas average hourly earnings are $25.55 and nationally they are $26.56

Austin Real Estate

Austin real estate continues it’s hot streak as the median home price in December 2017 was $308,104. This is a 5.3% increase from the year prior. The Austin commercial real estate market continues to be hot as well. For more info about that feel free to call 512-861-0525

 

For more information about the Austin Economic climate check out the Federal Reserve Bank of Dallas https://www.dallasfed.org/research/indicators/aus/2018/aus1802.aspx

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Jo Guerra thanks for following me on Twitter! https://t.co/CO1Z3gs8bD

Jo Guerra thanks for following me on Twitter! https://t.co/CO1Z3gs8bD

— Nathan K Smith (@AustinTenantAdv) February 4, 2018

from Twitter https://twitter.com/AustinTenantAdv

Should You Open Another Commercial Office or Retail Space Location?

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So your first commercial office or retail location is doing great. Should you open another one? Adding a 2nd or 3rd office or retail space whether in the same city or another city and/or state offers many benefits such as:

• Expanding your brand
• Access to a new expansive service area and customers
• Increase total sales and profit
• Ability to respond more quickly to customers
• etc…

There are many more reasons why you might open a remote business site, however before you do run the numbers, weigh the pros and cons, seek contingencies, and look for less expensive alternatives. Also, ask yourself a lot of questions. Below are a few to get you started.

1. Is there a location that makes good business sense? – External factors such as location must be considered when evaluating expansion options. Before leasing or buying office or retail space make sure to thoroughly research each location looking at traffic patterns, proximity to vendors, partners, and competition, ease of access to and from, parking, etc. You also want to get a handle on the commercial real estate costs and rental rates. If your considering Austin, Tx for example a good Austin commercial real estate agent with experience in retail and office space can provided you with the information you need to make an informed decision.
2. Are YOU the main person in your business? – Many small businesses rely on the owner of the company to operate. If the success of your company depends on you having to be there to meet people face to face there is no way you can be at 2 places at once. You will end up traveling more than you like. If your business stops because you are on vacation then you may not want a 2nd location. If you have a good team leader that can manage the business on their own then it might make sense to open another office or retail shop.
3. Have you run the numbers? – If you are not from the city or location you want to open an Austin retail space in you may be surprised to find out the rental costs are much higher than your original location. Make sure you are able to afford running a second office. Below are a few things you should get estimates on first to ensure you can afford to have a 2nd location. 
   1. Monthly rent estimates
   2. New fixtures, furniture, signage, office equipment, etc.
   3. Additional employees
   4. Competition – Need to factor how much business the competition might take away
   5. Business operations such as insurance, maintenance, utilities, communications between your locations
   6. Advertising costs for each location
   7. etc.
   8. Remember your new brand office won’t be profitable at first and your 1st location will have to support it. Make sure your main office is stable and profitable before expanding.
4. Are you able to share operation systems between locations? – If you can avoid having redundant operations. Ideally you want to be able to handle as many business functions as you can with the current staff and avoid additional overhead if you can. What are you able to share the cost of and what separate costs will be necessary to run the new location? 
5. Can you maintain the quality of your service? – If your service quality drops when you open a new location you will lose customers and money. Don’t let the new location be a drain on your original location and hurt your reputation. Your existing clients will come to expect the same level of service.
6. Can you expand with other ways? – Before you open a 2nd office or retail store first ask yourself if there is a better way to increase your customer base and grow sales. Can you hire more people? Spend more money on advertising? Can you outsource jobs or projects? Can you extend your hours of operation? Can you expand your product or service offerings? Make sure to consider all the alternatives before making the decision to open a second location.

If after asking yourself all the questions above and more you determine that opening another location makes sense for your business get help to find space. For example an Austin commercial real estate company can help you in the South Central area. They will be experts in the Austin metro area and can help you identify and select a location that will be successful.

 

 

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Kunik Orthodontics thanks for following me on Twitter! https://t.co/WWmPlLt3XJ

Kunik Orthodontics thanks for following me on Twitter! https://t.co/WWmPlLt3XJ

— Nathan K Smith (@AustinTenantAdv) February 2, 2018

from Twitter https://twitter.com/AustinTenantAdv

Most Important Services a Commercial Realtor Can Provide Tenants

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As a tenant when you work with a commercial real estate agent you should expect to be well represented. You want to work with a commercial realtor that is honest, transparent, and has your best interest in mind. Just because the agent works for the biggest CRE firm in town does not mean they will provide better service than an agent that works for a smaller company. Some of the best commercial realtors in the business work with small boutique commercial real estate companies or are independent.

When I ask tenants what the most important characteristics of a commercial realtor are most respond with the below.

1. Quick to respond
2. Great communicators
3. Timely
4. Transparent
5. Honest
6. Patient
7. Find spaces that meet their current and future business needs
8. Negotiate good deals
9. Have update to date market knowledge
10. Are good negotiators
11. Have access to hard to find listings
12. Not salesy
13. Don’t push a representation agreement in their face until after proving that they are helpful and will add value

It’s a no brainer that every tenant wants to find the best space and negotiate the best deal. But when I asked them this question the number one response was that they want their commercial agent to communicate and be responsive. They also don’t want to have to sign any exclusive representation agreements until after the agent provides examples of value. How can they be expected to sign a contract with an agent that they just met?

Tenants like to work with commercial realtors that are service oriented and not just chasing another deal. Once they feel comfortable and trust and agent they will be more comfortable signing an agreement. However commercial realtors must give and provide value first.

The post Most Important Services a Commercial Realtor Can Provide Tenants appeared first on Austin Tenant Advisors.

Things to Consider When Setting Up Satellite Office Spaces

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When opening up a satellite office you need to ensure that you find and design a space that can adapt to the changing work environment. The traditional model of employees working 9-5 is not typical anymore. In order to recruit and retain employees companies should adopt more flextime and telecommuting options that allow the employees to spend more time with their families and be able to take care of personal matters.

If you are about to open a satellite office below are a few factors you should consider

1. How do your employees work? – Will your satellite office be a sales and marketing office? If so will they be traveling and gone all the time? Or will it be an engineering office where they will mostly be in the office 9am to 5pm? Also having flexible space allows workers to move about the space and not be chained to one seat. For example an architect might need to move from their desk to a larger table so they can roll out big drawings, then move to another common area work area to discuss drawings with another colleague
2. Think about renting office furniture – If you are not sure about a city however want to test the market with a satellite office you may opt for a shorter lease or sublease. If that is the case then renting office furniture would be ideal. No matter how long a company has been in business they all have to manage their cash flow. There is always going to be an element of uncertainty when making long range projections. Furniture rentals can help minimize this uncertainty and give you flexibility when your projections change. You also won’t have to pay to store or move unneeded furniture.
3. Rent collaborative & active furniture – For your mobile employees think about using huddle tables, teaming stations, etc that will let your employees be productive and active.
4. Lease term – If this is your first time having an office in a new city then you might want to focus on office buildings that will allow tenants to sign short term leases or look for office subleases. That way if things don’t work out you are not stuck with lease payments.
5. Think about your current and future growth needs – A company leader must constantly keep a pulse on the market to be able to make short and long range projections about the amount of office space is needed. Having a good tenant representative that keeps you updated and educated can save you a great deal of time. If you business is stable and the future is probably then find a building that can accommodate your space needs now but also negotiate the option to expand.
6. Consider your workforce when choosing a location – You want your satellite office to be successful so lease office space in an area where your ideal talent pool is. Look at demographics of certain areas and pick the ones where you will have no problem finding quality employees with great talents. The same goes for any existing employees. Make getting to and from work easy for them. Trust me, they will be much happier if you think about their needs.
7. Ensure the office buildings are equipped with technology – Not all buildings are created equal. Some are newer Class A office buildings with all the bells and whistles, while others are older class C buildings that don’t provide tenants the technology they need. Make sure to investigate each and ensure they have the services necessary to support your business.
8. Think about your culture and branding – You may want to maintain the same culture in your satellite office as your corporate office however keep in mind cultures can be different between regions. Things are not going to be exactly the same in California as they are in Austin, Tx. Maybe shoot for 75% to 85%. You want to keep the same company core values however don’t stress yourself trying to duplicate everything. Consistent branding is key however as you want your satellite office to be seen as an extension of the corporate office.

If you need help finding a satellite office in Austin, Tx or are planning on having one in the next 6-12 months give us a call.

 

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