Business, Profits and Strategy

Distribution Real Estate

If Your Company Relocated

* New Lease Term: 10 Years
* Vacancy - 1 Year: $6.00 / square foot
* Leasing Incentive: $3.00
* Marketing & Advertising: $1.00
* Space Preparation, Construction: $2.50
* Capital Improvements: $ 1.00
* Professional Fees: $ 1.00
* Administrative Fees: $ 0.50
* Government Fees: $ 0.20

Total: $ 15.20 per square foot

If Your Company Extended Its Lease

* Vacancy - 0 Years: $0.00 / square foot
* Leasing Incentive: $3.00
* Marketing & Advertising: $0.00
* Space Preparation, Construction: $2.50
* Capital Improvements: $ 1.00
* Professional Fees: $ 0.50
* Administrative Fees: $ 0.25
* Government Fees: $ 0.20

Total: $ 7.45 per square foot

Difference: $ 7.75 per square foot

Technology / Flex Real Estate

If Your Company Relocated

* New Lease Term: 10 Years
* Vacancy - 1 Year: $12.00 / square foot
* Leasing Incentive: $6.00
* Marketing & Advertising: $1.00
* Space Preparation, Construction: $12.00
* Capital Improvements: $ 1.00
* Professional Fees: $ 1.00
* Administrative Fees: $ 0.50
* Government Fees: $ 0.20

Total: $ 33.70 per square foot

If Your Company Extended Its Lease

* Vacancy - 0 Years: $0.00 / square foot
* Leasing Incentive: $6.00
* Marketing & Advertising: $0.00
* Space Preparation, Construction: $6.00
* Capital Improvements: $ 1.00
* Professional Fees: $ 0.50
* Administrative Fees: $ 0.25
* Government Fees: $ 0.20

Total: $ 13.95 per square foot

Difference: $ 19.75 per square foot

*All numbers and scenarios above, while based on realistic market dynamics, are hypothetical, are intended for educational purposes only, and do not apply to any particular company, landlord, building, market, or otherwise. Consult a qualified service provider before making any real estate decisions.

Andrew B. Zezas, SIOR, is Relationship Manager, Strategist, and President & CEO of Real Estate Strategies Corporation, Publisher of "Business, Profits and Strategy", a monthly online publication read by thousands of business, financial, and real estate executives nationally, and, is the author of two new real estate books, The CFO's Guide to Understanding Corporate Real Estate Transactions and The CFO's Guide to Hiring the "Right" Real Estate Service Provider, both of which will are available at www.TheCFOsGuide.com.

Mr. Zezas is well-known for his ease and informative style of public speaking, and has given informal talks, formal presentations, and has lead training and educational programs for business, professional, government, and trade associations, throughout the US and Canada, including the American Management Association (AMA), the U.S. Postal Service, RealComm, Building Owners and Managers Association (BOMA), Society of Industrial and Office Realtors (SIOR), and others. Andrew is founder and National Chairman of the SIOR Tenant Representation Specialty Practice Board, a group of over 300 tenant representation focused commercial real estate professionals from around the world. He is a licensed real estate broker in New Jersey, New York, Connecticut, Pennsylvania, and Florida, and is a licensed real estate instructor in Texas and Indiana. He can be reached at 908 245 5999 or via email.

Real Estate Strategies Corporation, located in Kenilworth, New Jersey, and serving its clients throughout the country, helps companies create and execute Business DRIVEN Real Estate Solutions...and Opportunities, faster and with less risk. Visit www.RealStrat.com.

Read other business, real estate, and finance articles written by RealStrat's experts.

THIS WORK IS DESIGNED TO PROVIDE PRACTICAL AND USEFUL INFORMATION ON THE SUBJECT MATTER COVERED. HOWEVER, IT IS SOLD AND/OR PROVIDED WITH THE UNDERSTANDING THAT THE AUTHOR AND THE PUBLISHER ARE NOT ENGAGED IN RENDERING LEGAL, FINANCIAL, ACCOUNTING OR OTHER PROFESSIONAL ADVICE TO THE READER. IF LEGAL, FINANCIAL, ACCOUNTING OR OTHER PROFESSIONAL ADVICE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL SHOULD BE SOUGHT. THE AUTHOR AND THE PUBLISHER SPECIFICALLY AND EXPRESSLY DISCLAIM ANY LIABILITY THAT MAY BE INCURRED AS A RESULT OF THE USE OR APPLICATION OF THE INFORMATION THAT IS CONTAINED IN THIS WORK.