Adler Insights: The Latest in Commercial Real Estate Trends & Culture

How much office space do you really need?

Posted on December 1, 2011 by Adler Insights

Calculating the right amount of space for your business

Office Space for Rent

CC Image courtesy of roeyahram on Flickr

Every entrepreneur dreams of having the perfect office in the perfect location to ensure a successful business. However, finding the ideal location can be quite tricky, time consuming and frustrating. Before the office search begins, you have a general idea of what you’re looking for in terms of features and amenities.

But what can really leave you puzzled is the essential question: “How much space do I actually need?”

The amount of space you need depends on the type of business you’re in, but after being in the real estate industry for over 6 years now, I’ve seen that there are general guidelines that can help determine the amount of space needed.

It’s not just about how many total square feet you need in your new office — it’s also about the amount of open space and number of rooms you want. You need to decide who in the company will require their own office. In general, the following employees require their own office and you can estimate the following square footage for them:

  • Presidents: The president of the company should obviously have their own office. A president’s office should usually measure around 400 SF.
  • Vice Presidents: Vice Presidents generally have large offices as well, but do not require offices as large as the president. You can estimate 250-300 SF for their offices.
  • Managers: Managers’ offices are typically around 175-225 SF.

Other employees don’t require their own office, but need privacy in a decent sized cubicle. These employees include secretaries, accountants, engineers and customer service representatives. Typically they will need anywhere from 125-175 SF. Interns, temps and clerks can work in open spaces from 100-125 SF.

In addition to calculating how much space each employee needs, you also have to factor in common areas, including a reception area (125-150 SF), kitchen/break room (200 SF), mail room (150 SF), file room (125 SF), storage room (200 SF), work room with fax machines and printers (125 SF) and conference rooms (300 SF).

You could also decide to go with the current trend that has hit the office space market: fewer rooms and more open space. There may be 1 or 2 private offices, but typically the workspace is open, equipped with tables and wi-fi. This encourages communication and collaboration between employees sharing the space.

After choosing between private offices or open space, remember that the lease is anywhere from 3 to 7 years, meaning that both future expansion and downsizing are options that can be included in the lease. If you anticipate future expansions, in general it’s safe to add 10-20% of square footage to what you previously calculated.

Figuring out how many square feet you need can be tricky. However, a little math before diving into your office search can save a lot of time and headache.

Matthew Bittel, Adler Realty ServicesMatthew A. Bittel
Adler Realty Services

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The Leasing Checklist

Posted on October 18, 2011 by Adler Insights

Looking to open, expand or relocate your business can be both exciting and exhausting. While brokers and leasing agents are trained to help you find the right space for your needs, it’s important to start ranking and give consideration to key factors such as location, leasing terms and amenities to get the most out of your search. Here’s your quick guide to what you need to know before you start…

  • Determine your budget. Rent, tax, insurance costs, utilities & the misc. costs add up!
  • Can you afford the upfront and relocation costs? Is it viable to move at this time? Is there a security deposit you need to be aware of?
  • Determine the size of space needed. How many employees? Is there a possibility to expand in the near future? How many parking spaces are needed?
  • Determine the location. Have a good/better/best scenario of different areas you would be willing to go.
  • Determine what type of space you need. Retail, power center, neighborhood center, office, flex-warehouse, warehouse, heavy industrial, light industrial, land, etc.
  • How long of a lease term is desired? Longer leases lock you in with set escalations and sometimes a better rate.
  • Do you have power requirements? 3 phase, higher amperage, etc.
  • Do you have any additional requirements? Large elevator, dock-high doors, fenced areas, secured parking, drive-up convenience, etc.
  • Do you need signage or exposure on a main road?
  • Does your business require specific zoning? A broker will be able to help you with this!

Find a broker that specializes in the type of property you need. They can help you find the best location for your business and their services are free for the tenant!

After you have determined that you have done all your due diligence and figured out exactly what you need, then you and your broker can move forward to viewing locations, negotiating terms and then executing a lease for the space that will best suit your needs.

John KruszewskiJohn Kruszewski
Adler Realty Services, LLC

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Hardwired for Success

Posted on July 28, 2011 by Adler Insights

Kenneth BarnhillHaving been a sales trainer, sales manager and commissioned salesperson all of my adult life, I read with interest this recent article on personality traits possessed by successful sales types, compiled by Drew Berman.

I have had the pleasure of working with Drew, a personal friend and a top performer with his company in the Network Marketing industry, for the past few years. I have always been intrigued by his insight. Based upon my experience and research in this area, I have found an extremely high percentage of these traits exhibited by the overachievers I have been associated with throughout my career.

- Kenneth Barnhill

The following post comes courtesy of Drew Berman. See the original article, in its entirety, at http://blog.drewberman.com/millionaire-mind/personality-traits-successful-salespeople/

If you ask extremely successful salespeople, “What makes you different from the average “Joe” or “Jane” sales rep?” you likely will get an off-the-cuff, and probably inaccurate answer, if any. In fact, successful salespeople might not even know the real answer to this question because most successful salespeople are simply doing what comes naturally.

Over the past decade, Steve W. Martin, who teaches sales strategy at the USC Marshall School of Business, has interviewed thousands of top “B2B” (business-to-business) salespeople who sell for some of the world’s leading companies, administering personality tests to 1,000 of them, with the goal of measuring their five main personality traits (openness, conscientiousness, extraversion, agreeableness, and negative emotionality) to better understand the characteristics that separate them from their peers.

7 Personality Traits of Successful Salespeople

  1. Modesty: Contrary to conventional stereotypes that successful salespeople are pushy and egotistical, 91% of top salespeople had medium to high scores of modesty and humility. Furthermore, the results suggest that showboat salespeople who are full of bravado alienate far more customers than they win over.
    Impact: Team-Oriented. As opposed to establishing themselves as the focal point of the purchase decision, extremely successful salespeople position the team as the centerpiece.
  2. Conscientiousness: 85% of extremely successful salespeople could be described as having a strong sense of duty and being responsible and reliable. They take their jobs very seriously and feel deeply responsible for the results.
    Impact: Account Control. The worst position for salespeople to be in is to have relinquished account control and to be operating at the direction of the customer, or worse yet, a competitor. Conversely, top salespeople take command of the sales process in order to control their own destiny.
  3. Achievement-Oriented: 84% of the top performers tested scored very high in achievement orientation, being fixated on achieving goals and continuously measuring their performance in comparison to their goals.
    Impact: “Political”-Oriented. During sales cycles, extremely successful salespeople seek to understand the politics of customer decision-making. Their goal-orientation instinctively drives them to meet with key decision-makers. Therefore, they strategize about the people they are selling to and how the products they’re selling fit into the organization instead of focusing on the functionality of the products themselves.
  4. Curiosity: 82% of extremely successful salespeople had intense levels of curiosity.  Top salespeople are naturally more curious than their lesser-performing peers.
    Impact: Inquisitiveness, which correlates to an active presence during sales calls. An active presence drives the salesperson to ask customers difficult and uncomfortable questions in order to close gaps in information. Top salespeople want to know if they can win the business, and they want to know the truth as soon as possible.
  5. Lack of Gregariousness: Surprisingly, top salespeople and those ranking in the bottom one-third of performance lacked the desire to be overly social. Overall, top performers averaged 30% lower gregariousness than below average performers.
    Impact: Dominance. Dominance is the ability to gain the willing obedience of customers such that the salesperson’s recommendations and advice are followed. The results indicate that overly friendly salespeople are too close to their customers and have difficulty establishing dominance.
  6. Lack of Discouragement: Less than 10% of extremely successful salespeople were classified as having high levels of discouragement and being frequently overwhelmed with sadness. Conversely, 90% were categorized as experiencing infrequent or only occasional sadness.
    Impact: Competitiveness. A very high percentage of top performers played organized sports in high school. There seems to be a correlation between sports and sales success as top performers are able to handle emotional disappointments, bounce back from losses, and mentally prepare themselves for the next opportunity to compete.
  7. Lack of Self-Consciousness: Self-consciousness is the measurement of how easily someone is embarrassed. The byproduct of a high level of self-consciousness is bashfulness and inhibition. Less than 5% of top performers had high levels of self-consciousness.
    Impact: Aggressiveness. Extremely successful salespeople are comfortable fighting for their cause and are not afraid of rankling customers in the process. They are action-oriented and unafraid to call high in their accounts or courageously cold call new prospects.

Not all salespeople are successful. Given the same sales tools, level of education, and propensity to work, why do some salespeople succeed where others fail? Is one better suited to sell the product because of his or her background? Is one more charming or just luckier? The evidence suggests that the personalities of these truly great salespeople play a critical role in determining their success.

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Taking Real Estate to the Virtual World – Painting the Whole Picture

Posted on July 12, 2011 by Adler Insights

Gian RodriguezAs more and more companies have been forced to do more with less during this economic climate, there just isn’t enough time in the day to finish what needs to get done. And that includes searching for office or warehouse space for your business.

That’s where our virtual, 24-7, one-stop shop approach to checking out office and warehouse vacancies helps cut through the clutter.

As a leasing agent for Adler, representing more than 1,000,000 square feet of office, warehouse, flex and retail space throughout South Florida, I see it on a daily basis. Small-business owners often just do not have time during the day to either see a vacant space or process all of the information available, regardless if they are represented by a broker or not.

Adler Property BrochureThat’s why with each of our vacancies, prospective tenants need only download a suite-specific brochure from our Web site to get the complete picture of the space.

If a picture is worth a thousand words, what are a video, satellite photo, area map, price, written description, rental square footage and floor plan worth?

While others just give you a floor plan, rentable square footage and perhaps a picture of the building, our brochures provide that virtual experience by giving the prospective tenant everything they need to know in a simple, concise PDF, which is easily printed, emailed and shared. And the best part is, you can do this 24 hours a day, 7 days a week, 365 days a year, all from the comfort of your computer.

Time is money, right? If that old axiom holds true, my guess is we saved you a bunch.

-Gian Rodriguez

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Tenant Tips for How to Handle Strays

Posted on June 28, 2011 by Adler Insights

CARE Feline Rescue can help tenants with services for stray cats.Commercial properties are sometimes a hot spot for stray dogs and cats that are lost, abandoned or wild. Tenants often feel sorry for these visitors, so they feed them, water them and maybe even pet them a little – but it rarely ends there. The animals will return day after day for more food and compassion. If you are an animal lover and want to help, there are many things you can do:

  • If you see a cat on your property and believe it it may be feral, there are humane options. If you do not want to remove the cats but would like to stop the reproduction cycle, Animal Services encourages you to call CARE Feline Rescue. CARE is a non-profit organization committed to reducing the population of feral and abandoned cats through their Trap-Neuter-Return (TNR) program. Animal Services provides feral cats with free vaccinations as well as spaying and neutering through CARE. If you want them removed altogether, Animal Services in your area can assist you.
  • Spaying and neutering animals is a major way to help control the population of strays and overabundance of puppies and kittens in shelters. Thousands of animals need to be euthanized every year simply because there is not enough room at the shelters. Every city and county has programs that will spay/neuter your pet for a nominal fee. Contact your local animal services department to find out prices and make an appointment.
  • If you see a dog on your property without a collar, you can call “311” for local animal services. Animal services carry a scanner to determine if the dog has been micro-chipped and help identify its owner. Even if they are not micro-chipped, most people will contact animal services first if they lose their pet. If there is no chip or owner to be found, animals may also be adopted from the shelter.
  • Dog traps are delivered free of charge by the Animal Services Department when an animal control officer is unable to capture a stray dog. Tenants or residents who need a trapped dog to be picked up can also dial “311.”
  • You can also help by reporting animal abuse. Last year, Orange County Animal Services investigated nearly 3,500 reports of animal cruelty, neglect and abandonment. From dog fighting and beatings to animals being set on fire, cruelty has no boundaries. It happens everywhere and often in places you would not expect. Animal abusers are also 5x more likely to commit violent acts against people.
  • Another way to help is to become a foster home for animals. And, if you can’t foster, you can always donate to shelters in need of food, newspapers, treats, toys, and financial support.
  • You can help with the population in shelters by reminding the people around you to make arrangements in the event they are no longer able to care for their pets. There are thousands of dogs in shelters because their owners have passed away and the family does not want the animal. Some animals, such as parrots, can live up to 80-85 years, so owners need to have a plan of action as to who will give the animal a forever home after they are gone.

You have several options in the event a stray dog starts frequenting your property.Remember: it is NEVER the animal’s fault if they are in a shelter, being abused, or roaming the streets. Having a pet should be a privilege, not a right. These animals give us unconditional love, and they deserve responsible pet owners.

- Dana Yockey

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Getting Down to Business with Social Media

Posted on June 14, 2011 by Adler Insights

Scott LloydBy now, I’m sure you’ve seen how social media has pervaded all aspects of our lives – you can share your thoughts and locations with strangers, become an amateur critic for everything from food to movies to fashions, even log-in to Facebook via your car. There are still skeptics about the value and ROI of social media as it pertains to B2B, but with the right approach you can learn to use Facebook, Twitter and co. to achieve real business goals and become an authority in your field.

Here are a few of the ways I’ve found social media to be applicable to commercial real estate, in my role as a leasing agent and broker…

  • Twitter is a great public forum for exchanging content, opinions and insights – all within 140 characters. It’s another place where I’m able to be found, thanks to a relevant, memorable and easy to search for handle (@ScottLloydCCIM). By placing hashtags in my tweets, they will be categorized based on subjects, such as #CRE, #Florida, #RealEstate, etc. I can also follow along and participate in real-time discussions as well, thanks to Twitter chats like #crechat and #miamirealechat.
  • LinkedIn takes professional networking online. With a public profile, I can be found by name, location, organization, job title and search terms (which is why writing a keyword-rich Summary is so important). I’m also able to join groups that are relevant to my position and interests. Your Twitter account and blog can also easily be linked to your profile. Of course, you have to share your profile and ask people to connect with you (email signatures and business cards are great places for this).
  • YouTube allows for virtual tours of spaces and buildings we market. My firm recently launched the Adler Group YouTube channel, and we’re already seeing impressive results in quality of traffic. Visitors to www.adlergroup.com from YouTube spend more time on our site and look at more properties than those who arrive from other sites.
  • Facebook has become just as important a place for brands to connect as it has been for friends and family. The Adler Group Facebook Page allows us to post articles, job postings, new listings & more to those who have opted in (i.e., “Liked” us), which gives us free publicity in people’s news feed – and a viral effect when people share our content.

When it comes to social media, don’t use it to just sell sell sell. That’s an easy way to lose followers. You’ll quickly find yourself yelling into an empty room.

Instead, share share share. Yes, you’ll find I occasionally post a new listing – it is my job to lease space and sell property, after all – but I’ll supplement my feeds with real estate-related articles, interesting pieces on the economy and anything positive or fun about my adopted home-state, Florida.  I also have a habit of commenting on my favorite teams once in a while.

While I can’t close a deal exclusively over social media (yet!), it’s certainly helped me build my personal brand. I can show expertise. I can make new connections. I can improve my availability to existing friends and contacts. I can also show personality, something folks can’t get from a “For Lease” sign or business card.

There are hundreds of other social media tools out there, but this is where I like to concentrate.

What social media tools do you like to use? Has it helped you grow your business?

- Scott Lloyd, CCIM, RPA

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6 Lessons Learned from the Miami Heat

Posted on May 31, 2011 by Adler Insights

The Miami Heat vs. Commercial Real Estate
NBA, meet CRE. Don’t worry. LeBron James, Dwayne Wade and Chris Bosh aren’t hanging up their sneakers to start leasing out office space any time soon. But there are a few parallels between this Miami Heat team and the commercial real estate game.

As Miami looks ahead to the NBA Finals, here are some lessons we can apply to Florida’s commercial real estate scene.

The Good…
The Heat are headed to the NBA Finals, so they must be doing something right. Let’s take a look at how they got there, and how the team matches up with the real estate biz.

  • You have to hit long-range shots. 3-pointers can change the outlook of an entire game. At Adler, we think long-range, finding real estate assets which may be distressed at time of acquisition, but which offer enormous potential down the road.
  • Speed is a difference-maker. Miami’s “Big 3” are young and fast. Real fast. You have to move fast in real estate, too. Time-saving tools such as online listing services, QR codes and social media give you a competitive edge. Adler can also save tenants time with concierge services during move-in and virtual tours on YouTube during a property search.
  • Home court advantage. The Heat are undefeated at home during the playoffs. That’s huge. We also know a little something about Florida and the Southeast – Adler is headquartered in Miami and has been involved in commercial real estate in the area for over 50 years. We know our home turf better than anybody.

The Bad…
Obviously the Heat are looking good now, but they did have a late-season 5-game losing streak. While no one’s perfect, here are some of the things we do to try avoid a dropoff in our game.

  • Bigger names don’t always mean better game. Notoriety doesn’t guarantee a winner. When you play with the big boys, you may get lost in their numbers game. Adler is a privately owned, locally based real estate firm. We are nimble, committed to personal service and can react quickly.
  • Keep egos in check. The name on the front of the jersey is more important than the name on the back. Adler works as one, with a singular mission of customer service excellence – on behalf of tenants, owners, brokers and investors.
  • You need balance. You can’t win with just big men. You can’t win with just guards. You need to play as a team, with diverse skill sets. Adler’s 50+ years of experience has allowed us to see all facets of commercial real estate, including leasing, property management, building renovation/rehabilitation, acquisitions and real estate investing.
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Tour a Space (Without Leaving Your Computer)

Posted on May 13, 2011 by Adler Insights

At Adler Realty Services, our leasing agents have always been dedicated to providing the best service in order to help businesses find the best spaces. One of the ways we can help is by offering video tours of many of our commercial properties.

Video makes walkthroughs available to tenants who may not have immediate opportunity to schedule an in-person tour. This can be especially helpful in the case of businesses from out of town looking to relocate or national chains considering expansion to new markets.

What’s the view like? Will this office layout work when you’re ready to expand? Does this warehouse have roll-up doors? Now you can get a better idea of what our properties have to offer, without ever setting foot in the place.

Short walkthroughs like the example below allow you navigate prospective spaces and determine whether you should take the next step.

Your property search just got a lot easier. Check out more available spaces on the Adler Group YouTube channel.

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New Miami Boom on the Horizon?

Posted on May 6, 2011 by Adler Insights

Don’t look now, but the sun appears to be rising on the commercial real estate industry. A number of recent news stories are starting to point toward a healthy recovery for CRE in South Florida, and the Miami market in particular:

  • Sales of existing homes in South Florida are rising, highlighted further by strong condo sales in Miami-Dade. That means a growing pool of shoppers and professionals are confidently relocating to the area. Retailers and employers should take note.
  • The local economy is seeing a lift, thanks to several telling stats: Miami-Dade added jobs faster in February 2011 than any other metro area in the state, vacancies have declined for 5 consecutive quarters and international commerce is growing.
  • Plus, a new Florida Marlins ballpark slated to open in 2012 will likely bring more businesses to downtown Miami and the adjacent Little Havana district looking to cash in on the excitement surrounding the new facility.
  • Additional revitalization projects from the last 5 years, such as the Center for Performing Arts and the Midtown Mall, continue to make downtown Miami a destination for families and young couples.
  • The deep dredging of the Port of Miami brings tremendous implications to area commerce, which in turn drives real estate. According to Neisen Kasdin, “It will have a big impact on office occupancy, in bringing in new businesses and expanding those businesses.” Watch for warehouse needs to also pick up.

As Chris Lafakis, economist for Moody’s, pointed out in an interview with the Miami-Herald, “Miami tends to do better in good times, and worse in bad times. When you get into 2012 and 2013, Miami should be one of the top performers.”

The opportunities available in South Florida are nothing new to Adler Group, as we’ve consistently and aggressively been striking deals of varying sizes in both existing assets and development land – even during times of economic flux. The rest of the industry won’t be overlooking them much longer.

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