Starting at What, Not Where

Deciding where to lease office space can be unexpectedly challenging. Every decision variable eventually translates into economic value, either as a cost or a benefit. But the real challenge is what we call the search problem: companies often begin with “where” when they should begin with “what.”

Starting with what means bringing the right stakeholders together before the search begins. It means building consensus around the factors that drive value and clarifying what the company needs its office to accomplish.

Markets present options. Those options are all different. An occupier that starts touring space without a clear vision of the desired outcome oftenends up chasing one imperfect solution after another. Each option is abandoned when the team discovers it fails to meet a need they had not fully considered. One common example is when the people leading the search are not closely aligned with the financial considerations that matter most to the executive team.

The quality of a lease solution ultimately reflects how well it addresses the full spectrum of variables that define value, with each variable weighted appropriately.

Before you think about where, spend time defining what.

Put the right team in place, including finance and human resources. Study location drivers like employee commute patterns. Discuss the budget, not only annual rent expense but also the capital required to transact. Evaluate the time needed to execute the project correctly. Consider how different space solutions and designs may affect employee engagement, recruiting, and brand.

Bring in a real estate advisor early. The best tenant advisors guide companies through a thoughtful process that produces a specific target outcome, matched to a realistic timeline.

A strong “what” should include the target market, the type of space, the type of building, the project timeline, and the project budget. It may also reveal that certain objectives need to be adjusted because they are not realistically actionable. That is something you want to learn before going to market, not after.

Once your what is fully defined and tested, you’re ready for where.