Feb 14, 2018
In this episode of Brandstorm, we welcome Dan Jessup, executive vice president of Jones Lang LaSalle’s Wisconsin office. Dan joins us to discuss why the location you choose for your business is so important, and what to look for when starting up or moving.
Dan Jessup
A commercial real
estate broker for over 27 years, Dan explains that one of the main
differences between residential and business real estate is that
the former is fueled by emotion, while the latter is based on
facts. Examples can include demographics, average income per
household or the population within a 5-mile radius. A business
owner may not have a handle on those aforementioned statistics,
which is where a broker can truly assist. Brokers have a wealth of
market knowledge, experience in your business’ field and understand
current market conditions.
Jones Lang LaSalle
For over 250
years, Jones Lang LaSalle (JLL) has been a trusted partner to
organizations who want more value from the commercial real estate
they own, use or invest in. An international Fortune 500 company,
JLL’s 70,000 employees deal with every facet of commercial real
estate – from transaction management to construction and design
management – in 80 countries.
Current Commercial Real Estate
Trends
Though trends come and go, Dan states that
millennials are contributing to offices being more collaborative in
nature. Gone are the days of corner, private offices and in their
place are more communal workspaces. The current average occupancy
per 1,000 square feet is about 6-8 employees, up from 4-5 within
the last five years. These staff members spend less time at their
desks, more time working from home (or from a separate, third
location) and more time collaborating with others on premises.
Technology has also made a lot of space initially needed for
computer towers, server rooms or paper files obsolete.
Is It Better to Buy or Lease?
This is an important question with no good answer, Dan tells us. If
you’re in the market to purchase, it’s key to know the ROI of your
own company first. If that number is above 10%, Dan recommends
investing back in your own company versus in real estate. If your
business is experiencing fast growth, you may want to look into
leasing, especially from a landlord with multiple properties, in
the event that you need to relocate or your company outgrows your
original space.
What Questions Should You Ask a
Broker?
Dan suggests that since the industry has
become so specialized, business owners should work directly with
brokers within their city who deal directly in their field, whether
that’s retail, office, or warehouse space. He also mentions that a
great broker should know more about your own location than you do!
By working with someone who is well-versed in your arena, you’ll
easily be able to vet a broker by inquiring about the tenants
they’ve served or currently work with, what lease terms they’re
under and how recent those agreements are.
Contact Dan:
Website: www.jll.com
LinkedIn: www.linkedin.com/in/danjessupjoneslanglasalle