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Welcome to the Winter edition of Time to Move where we explore the top ten budget trimming ideas, review the office leasing and sales market, put the spotlight on Parenting Research Centre's recent project and officially launch the BRM project pack.
BRM PROJECT PACK ACHIEVES A WORLD FIRST!
BRM TOP TEN... BUDGET TRIMMING IDEAS
In leaner economic times every budgeted dollar must add value. BRM brings you the top ten ways to... trim your search, fitout and relocation budget: 1. Think open plan - In addition to improving communication, natural light and providing flowing layouts there are excellent financial reasons to consider open plan: lower rent, fewer partitions, less furniture and joinery, reduced A/C and ceiling works and improved air flow. 2. Second hand is the new black! - Traditionally frowned upon, preloved furniture can still be high quality, carries short lead times and is the ultimate environmental policy. Chairs, workstations, storage, reception, meeting and lunch areas are all zones worth considering. 3. Review your lease - Landlord incentives have increased. Rental rates are dropping. Vacancy rates are increasing with plenty of quality office space and existing fitouts entering the market. Now is the time to review your lease, know the market and negotiate with confidence. 4. Conduct a spatial and needs analysis before searching for office space – Clients often go looking for space before knowing exactly what is needed. Being committed to surplus space is a nightmare. Not enough means you will need to do it all over again sooner than necessary. Do some pre-search planning to help tighten the search criteria. 5. Consider an existing fitout or subleasing on a short term until the market returns. With careful planning, existing fitouts can be cost effectively adapted to suit your requirements. Ensure your make good obligations are considered, when taking on another company’s fitout. 6. Thorough planning – Timelines, budgets and investing time in the predesign stages will save you money in down-time, variations, extensive plan revisions, and receiving fitouts that lack future flexibility. Quantify all costs upfront to prevent budget blowouts. Include the make good, relocation and post relocation components. 7. Review the quality of finishes – Are high-end front of house areas important? Or maybe staff facilities are key to your company’s values? Laminate, timber, stone, or feature finishes? Allocate the right budget to the zones that are important to your project, whilst saving on others. 8. Delay the right areas – When projects close, so do the purse strings. Ensure that the important areas are delivered upfront. Adding joinery, partitions and upgrading floor finishes are less likely to proceed after occupation. Upgrading loose furniture is a simpler scenario. If staging the fitout, create plans that help implement the vision over time.
SEARCH, FITOUT AND RELOCATION PROJECT PACK BRM's expert search, fitout and relocation project management advice is now available online. The costeffective project pack assists clients to run their project in-house, ensuring the office search, fitout and relocation is well planned, cost-effective and stress free. And it's the first of its kind. Sales both nationally and internationally have commenced, and BRM is proud to already be assisting clients globally within the first weeks of operation. A free sample of the project pack can be downloaded which includes a complimentary and detailed project checklist:
www.businessrelocation.com.au
Help spread the news! Please send this newsletter and website link to anyone you think could be assisted by BRM's project pack.
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BRM TOP TEN…BUDGET TRIMMING IDEAS cont.
9. Go green – There can be an initial premium with environmental projects, but some of the largest opportunities are cost free. There are three major components of a green project – selecting the area and premises; design and fitout; ongoing management and monitoring. Implementing the right green principles can have quick payoffs in addition to the environmental and social positives. 10. Appoint consultants aligned with your design and budget goals – Selecting project managers, architects, engineers and builders who regularly deliver projects above or below your project standard can lead to frustration and additional costs. When appointing fitout providers ask questions, visit projects, look at website galleries and chat to previous clients who match your scope and budget level.
MELBOURNE OFFICE MARKET REVIEW
The first half of the 2009 office market has reflected the recent changes in economic performance, with leasing power shifting to tenants, together with softer sales. CBD leasing - Vacancy rates increased to 4.8% (Q1, 2009 Property Council of Australia) and are expected to rise further. Oversupply concerns are minimised from easing of projects in the construction pipeline and new office buildings being dominated by pre-commitments. As a result Melbourne will continue to perform better than other major Australian cities. Suburban leasing - Blanket increases in office vacancy across all suburbs has been recorded, rising to 8.1% in March 2009. As lending requirements tighten and the ratio of pre-commitment requirements increase, many speculative developments are being placed on hold. Construction recently released to the market together with upcoming completions will cause vacancy levels to continue to rise in the short and medium term. Tenant demand for high quality, modern sustainable buildings means leasing activity will over time fill these newer options, creating backfill opportunities. Sales - Investment activity in 2009 is substantially lower than 2008 or 2007. Overseas pressures have resulted in institutions mainly disposing assets, and limited investment is now dominated by private investors and owner occupiers. Owner occupiers continue to view the suburban market as a cost effective alternative to the CBD in addition to reduced travel costs and time. Outlook - Longer term, population growth and solid economic foundations will assist Victoria’s recovery and subsequent growth. In the shorter term, the slowing of the construction and high pre-commitments means the increase in vacancy levels will be capped. Backfill from major tenant vacations and subleasing will continue to dominate the market into 2010 when vacancy levels are expected to peak and then lower. Until this point, rents will continue to drop together with rising incentives to help tenants offset fitout and relocation costs. An increase in lease renewals can be expected as landlords become increasingly aligned with the market.
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PROJECT SPOTLIGHT: PARENTING RESEARCH CENTRE
Parenting Research Centre is a thriving national research organisation established to help parents raise happy healthy children. They turned to BRM to provide search, fitout and relocation guidance for their inner Melbourne office requirements.
Click Here to find out more about Parenting Research Centre’s project.
Christian Thompson, Director of Operations and Programs summarised the project: “Our staff, partners and clients love the results and we are amazed at how painless the process has been.” Warren Cann, Executive Director, explained that change management was an important factor in this project. “It was essential that staff input was reflected through the process. The ‘high value’ spaces have been utilised for breakout and lunch areas. Workstations, meeting areas and storage is generous. Staff feedback, presentations and information sharing were facilitated through the entire project.” Innovative design approaches included complete open plan layout to reflect the flatter organisational structure, hotdesking, dual zone informal meeting areas, glass partition whiteboards and large artwork murals to effectively communicate Parenting Research Centre’s values. “The end result is one that works beautifully” said Warren, “The fitout has been well received, contains flexibility and all achieved on a tight budget. We are very proud of our new space. It makes us smile.” If you would like your workplace to make you smile, contact Business Relocation Management.
2008 BUSINESS RELOCATION MANAGEMENT l 122 Balmain Street, Richmond VIC Australia, 3121 www.businessrelocation.com.au